Major banks not 'screwing borrowers'

by Mackenzie McCarty04 Mar 2013
“I’m sure there’s an element of proof in [Fraser’s comments] – but the RBA base interest rates on what borrowers actually pay and had banks actually passed on the cuts in full, they wouldn’t have dropped it.”

Van Onselen argues that the RBA doesn’t set the rate independently and agrees with earlier comments made by current governor Glenn Stevens.

“The RBA wouldn’t have lowered the cash rate as much had major lenders passed the interest rate cuts on in full. Glenn Stevens have been explicit on that point – we sent the cash rate at what borrowers actually pay.”

Bank home loan customers have received an average rate cut of 0.93 percentage points in the past year, while the RBA made a 1.25 percentage-point cut in the cash rate in the same time frame.

Fraser describes bank profits as ‘very, very healthy’ and questions how competitive the market is.


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COMMENTS

  • by Jerry Gibb 4/03/2013 2:01:06 PM

    Good on Bernie. Banks have always screwed their clients and will continue to use any reason to protect profits over giving the consumer the full benefits of RBA cuts.

  • by Edgar 4/03/2013 5:26:00 PM

    What on earth is Van Onselen smoking? That sort of circular logicis qite frankly a load of manure. Unfortunately he's left a large clarifier off his claim that if the banks had passed on the full reduction the RBA wouldn't have dropped the rates as much and borrowers would still be paying the same rate [but the banks wouldn't be able to make as big a profit]. Sorry son but most Aussies could live with that rather than the feeling they're being screwed.

  • by Borrower 5/03/2013 11:47:37 AM

    Bernie's right. The Emperor has no clothes.
    Let the record profits and bleats about cost of funding continue...