Banks accused of 'gouging' while they 'bleat about the cost of funds'

by Adam Smith25 Feb 2013


A newly registered political party has accused banks of "gouging" consumers while they "bleat about the cost of funds".
The Bank Reform Party, newly registered in Australia, has announced it will contest the Federal Election on a platform of reform in the banking, supermarket and fuel sectors. Founder and leader Adrian Bradley last year told Australian Broker that the party would welcome the involvement and input of mortgage brokers.
Now, Bradley has taken sharp aim at banks in the run-up to the Federal Election. Bradley cited an IMF study claiming the Australian banking system is "the least competitive in the world".
"Taxpayers underwrote the loss of competition, which handed the banks unprecedented market dominance and massive profits, via the Government Guarantee but the banks have rewarded us by gouging while they bleat about the cost of funds," he said.
Bradley called for support for the party, slamming the ALP and Coalition as "out of step" with Australian mortgage holders. He claimed that better regulation of the finance sector would not necessarily erode bank profitability.
"We want our banks and other big businesses to be profitable, strong and successful, but they also have to be fair and accountable to the Australian community. There is no reason why increased competition, basic fairness and doing the right thing should be out of the equation."


  • by Peter 25/02/2013 10:22:23 AM

    Finally someone in the media saying what we all think.

  • by Keith B 25/02/2013 10:39:25 AM

    This guy cannot be serious?. Built a party platiform on the back of bank bashing?

    Please there are far more important economic issues facing this country. One thing is for certain, the strength of the major banks' played a major role in minimising the impact of the GFC, at least they continued to lend unlike their counterparts in the USA & Uk.

  • by NoTimeLikeTheFuture 25/02/2013 12:18:21 PM

    Competition certainly shrunk post GFC. True.

    And to think we collectively underwrote Westpac as it gobbled up St George and RAMS (and CBA with Bankwest etc etc).

    We don't notice the reduced competition as rates have been falling.

    But when rates turn and start rising I think this guy will be vindicated - so I wish him the best with this venture.

    P.s. I think Supermarket competition (lack of) is a very serious matter