Former RBA governor Bernie Fraser has lambasted the major banks, saying they're putting shareholder interests above those of their customers. But one economist says the real story is not quite so simple.
In a Fairfax interview published this morning, Fraser says that despite lenders claiming they’re striking the right balance when it comes to serving investors, savers and borrowers, when it comes to mortgage-holders, the majors are putting profits first.
''It's a question of the relative priority they attach to their shareholders and their customers. That's been the case right through the recent period when they haven't always passed on all the RBA moves. They've had scope then, they have scope now, to [move downwards on interest rates] independently of the Reserve Bank. They've got room in terms of profitability; it's a question of their priorities, really.''
However, Macrobusiness economist, Leith van Onselen, told Australian Broker the major banks are not solely to blame.