World's most profitable banks stay mum

[Aragajag Profile]

The profit works out to be roughly $1000+ per every living person in Australia. You have to have a bank account if you wish to do anything with money in this country. Yet the greedy bastards wont even pass a cut on from their wholesale masters.


http://bigpondnews.com/articles/TopStor ... 94024.html
Politicians, business and consumer groups are exasperated that the nation's major banks have yet to respond to the Reserve Bank of Australia's (RBA) latest cut in the official cash rate.

The central bank cut the cash rate on Tuesday for the second month in a row. The decision, which followed the RBA's final board meeting of the year, took place against the backdrop of a worrying global economy.

Yet none of the big four banks - ANZ, Commonwealth Bank of Australia, National Australia Bank or Westpac - has so far flagged a response.

Treasurer Wayne Swan said bank customers would be 'rightly very angry' if their lending institution did not pass on the official rate cut in full.

'(The banks) have record profitability. Their return on equity is like no other anywhere in the world,' Mr Swan told reporters in Canberra on Wednesday.

He said his government had put in place a set of arrangements to increase competition that allowed customers to 'walk down the road and get a better deal'.

But asked if he had been in touch with the banks in the past 24 hours, Mr Swan said: 'No, I've spoken to the banks and informed them of my view over a period of time, and I will continue to articulate that view both privately and publicly.'

A decision not to pass on the cut could deny a household with a $300,000 mortgage a monthly saving of up to $49.

Two smaller banks - Bank of Queensland and ME Bank - almost immediately lowered their interest rates on Tuesday in line with the RBA's cut.

Australian Bankers' Association chief executive Steve Munchenberg told the ABC the banks had several things to weigh up, but realised that any decision not to pass the cut on in full would be very unpopular.

'On the other hand the cost of money has gone up,' he said.

Opposition Leader Tony Abbott said Mr Swan must ensure the rate cut was passed on.

'Unfortunately ... he might be the world's greatest treasurer but he doesn't seem to have a lot of authority with local banks,' Mr Abbott told Macquarie Radio.

Opposition treasury spokesman Joe Hockey said Mr Swan had warned banks about interest-rate movements on more than 50 occasions in the past and was ignored.

'Mr Swan can huff and puff all he likes, but no one takes him seriously,' Mr Hockey told AAP.

Australian Greens banking spokesman Adam Bandt said that during the global financial crisis the banks, which now boast record annual profits of more than $23 billion, received significant support that effectively guaranteed their operations.

'If the banks aren't willing to support the Australian people with an interest-rate cut, why should we give them generous support if the European financial crisis hits their bottom line?' Mr Bandt said in a statement.

Australian National Retailers Association CEO Margy Osmond said a rate cut was at the top of her members' Santa list because it would encourage people to spend.

Consumer group Choice director Christopher Zinn said the big four banks should be doing some hard listening and putting their customers first. If not, customers would consider switching, which is 'one message the big four can't ignore'.

The Australian Chamber of Commerce and Industry challenged the big banks to explain the delay in responding to the RBA's decision.

'The banks have no hesitation in increasing rates when the RBA tightens monetary policy,' the chamber's director of economic and industry policy, Greg Evans, said.