Major banks not 'screwing borrowers'

by Mackenzie McCarty04 Mar 2013
''I used to think that you could get competition with four good competitors, but they're not sort of demonstrating that belief of mine, really. I live in hope that one will take a lead one way and do something a bit more dramatic and that will spark a bit more real competition.''

Van Onselen, however, says that despite many predictions of a rate cut following tomorrow’s RBA meeting, he believes the cash rate will stay the same – as will major banks’ behaviour.

“If banks came out tomorrow and cut interest rates by 25 basis points, the RBA would probably just adjust the rate upward again in the next few months. People say the banks are screwing borrowers – not necessarily. The RBA has room to move the cash rate if they want to.”

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  • 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...