The government has been called on to introduce a surveillance regime to scrutinise banks that don't follow the RBA.
Ken Raiss, director of national accounting firm Chan & Naylor, has argued that the Federal Government should introduce a surveillance regime to ensure that the majors pass on any RBA cuts in full.
"The big four’s previous rate cut irreverence has potentially muted monetary policy and challenged the authority of the RBA. A surveillance regime needs to be established to prevent a further decoupling of interest and lending rates," Raiss said.
Raiss argued that the majors had managed to build infrastructure around themselves "that is now deemed untouchable", and said government oversight would be rendered powerless without prompt action.
"Australia needs a strong banking sector, but this needs to be balanced against a viable overall economy," Raiss said.