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ABA furious as ACCI compares banks to highway robbers

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Australian Broker | 18 Feb 2013, 08:00 AM Agree 0
The ACCI has called on banks to 'play fair' when it comes to passing on rate cuts - and the ABA's not having a bar of it
  • Broker | 18 Feb 2013, 10:13 AM Agree 0
    The fact is that banks have gone from making about 16 billion profit per annum in 2007 to about 25 billion per annum this year, amazing results considering the brittleness of the economy over the same period.
    One only needs to look at the seriously over inflated business rates and credit card rates to see that consumers are being well and truly shafted
    In summary, our major banks have as much creditability as our oil companies, which is a big fat zero.
  • SteveL | 18 Feb 2013, 10:27 AM Agree 0
    Well said Mr Anderson. We all know this as fact. There is no such thing as a discounted loan nowadays and anyone who thinks there either stupid, blind, naive or tick D...all of the above. The banks have re-claimed ground lost in the pricing wars of the late 1990's - Mid 2000's. The excuse of Cost of funding was always a load of their profits soared. As for Mr Munchenberg of course he is going to protect his interests and call any opposition "Misunderstanding....(Stupid)" that unveils the corruption and robbery going on at this level. Time for an enquiry perhaps? Then again our politicians are owned by the Banks. just look at NCCP and how that has provided a massive windfall for the banks at the disadvantage of brokers. DISGUSTING!
  • Chris C | 18 Feb 2013, 10:28 AM Agree 0
    That's funny - why is it then that our Major Banks have made record profits (against the trend of nearly all other banks in the world) and when a lot of other businesses are losing or closing down over the last 5 years of recession and we have more people on the poverty line now than Aust has had in 25 years. Their funding costs have reduced in spite of what they tell us (otherwise we would not have seen these record profits). But they have had a break even, one a reduced asset book in the last year (a poor year for them) and competition is gradually creeping back. Of late, we are seeing the major banks dropping rates and offering incentives to become more competitive to keep the business as in the past 5 years they have not had to because they have held a monopoly in the Australian finance market 90%+ They could easily have passed on rate reductions but they chose not to .... they are in the business of making money and while opportunity permits, makes hay while sun shines ..... we are tired of seeing the majors crying poor all the time and when this rubbish comes out how do they think we will accept their continuing reasoning and excuses.
  • SunnyCoastBroker | 18 Feb 2013, 10:34 AM Agree 0
    So, even with higher funding costs, CBA announces another increase in profit. It's so generous of the Banks not to pass on those higher funding costs to the borrowers.....
  • Country Broker | 18 Feb 2013, 11:06 AM Agree 0
    Is this a case of "if the cap fits wear it ?"
  • John Robbo | 18 Feb 2013, 11:37 AM Agree 0
    Personally - I think the comparison is rather harsh - on highway robbers!
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