Banks increase profit whilst homeowners go poor

Thursday, December 10, 2009

Once again the big banks have ignored the Treasurer’s requests to keep interest rates in line with the RBA. By exceeding the rates declared by the Reserve Bank of Australia, financial institutions such as ANZ, Commonwealth and Westpac are pocketing an additional $7 billion a year and thereby truly defying the economic downturn.

In a recent report by The Sunday Telegraph, Westpac, ANZ and Commonwealth Bank are averaging an extra $3000 a year from homeowners and credit card users. As approximately 97% of home loans are variable, the additional margin created by exceeding the RBA’s movements comes to approximately $6.4 billion. When you add the $512 million in extra interest from their credit cards, one can see just how and why the banks are earning an additional 7 billion dollars.

So, sadly for the most Australians, the RBA’s intention to raise interest rates and thereby slow down the economy and subsequent inflation has been hijacked by the increasingly greedy Banks.

Happy Savings!

Dave Kaplan

« OlderNovember 26, 2009 Why are Australians still Homeless?
January 29, 2010 Newer » Interest rates set to rise as inflation continues to soar

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