As the Liberal Party scrambles to dismiss Shadow Finance Minister Joe Hockey’s comments that suggest Australian banks must curb interest rate rises and show greater fidelity to the Reserve Bank’s official movements; bank workers and customers across the country are calling for further reforms for Australian banks.
Since the beginning of this year, the Better Banking charter has received strong levels of support from bank industry workers and customers alike. Our survey in April 2010 showed that 79% of Australians want to see a tougher response from the Government towards the banks passing on interest rates.
But this is not all that is required to improve banking in Australia, to make this essential service fairer for all. We’ve got high levels of debt that are unchecked by banks set on reaping record profits, banks continually engage in linking remuneration to sales volumes of debt products, banks continue to offshore jobs rather than investing in developing Australia as a financial hub by supporting jobs and skills here. Read more »
The Reserve Bank of Australia is expected to raise interest rates tomorrow from 4.5 to 4.75%, and banks are expected to announce their interest rate movements in the following days.
Customers of the big banks will face a nervous wait to see if their bank chooses to move rates higher than the official rates determined by the RBA, and bank workers will be readying themselves for a tide of community backlash should banks exceed the RBA rates as predicted by many commentators and analysts.
Overburdened mortgage holders can barely afford a fresh increase to rates which are already at high levels; and bank employees must bear the brunt of customer fury and disappointment at bank management decisions.
The Finance Sector Union has lobbied both Government and the banking industry, calling for banks’ rates to reflect the RBA’s official interest rate levels.
Going above and beyond that standard creates uncertainty for consumers, as well as creating a stressful dynamic amongst customers and bank workers. Read more »
