Government takes aim at banks over rate cuts failure

After years of defending the banks against calls for a royal commission, the government is increasingly frustrated with bank chief executives who have refused to pass on the Reserve Bank’s three official interest rate cuts this year.Mr Frydenberg will direct the Australian Competition and Consumer Commission to investigate the entire sector’s conduct on pricing, including any penalty to customers who stay loyal to their bank.

Mr Frydenberg said the inquiry would give the banks a chance to “transparently account” for their decisions, with the findings to be used to give customers the best possible deal. Investors with interest-only loans fared much better by gaining a 0.68 percentage point cut at ANZ, the full 0.75 percentage points at the Commonwealth Bank, 0.74 percentage points at NAB and 0.8 percentage points at Westpac.

The foregone saving was only $23 for property investors with interest-only loans, showing again that these borrowers have received more of the official RBA interest rate cuts than others. ABA chief Anna Bligh said the Deloitte Access Economic report found 2.8 million customers switched banks for their home loan, credit card or transaction account last year.

Mr Morrison also warned about the power of the banks in early August last year when, as treasurer, he released a Productivity Commission report into financial services.

Surely a rate cut that is passed to banks must come with conditions attached

You smoking something? You forget the Banking Royal Commission? Huge white-collar thieves Ken Henry, David Murray, Craig Meller, Andrew Thorburn, Ian Narev [et al] were not *incarcerated*, but shifted to lucrative jobs. The “government” has had A YEAR to jail them. BUT HASN’T.

'The economy is great. By the way, pay no attention to our desperate scrambling to cut interest rates and it's the banks' fault anyway.'

We had a banking RC. The recommendations of which the govt hasn’t acted upon. This is another way of looking as if they’re taking action when they actually are doing nothing.

Who writes this rubbish? Are you people impaired or just complicit. What fury ?

Maybe they should look at getting rid of compulsory EFT wages that's when the greed started now they don't even have to work for their money

Waste of taxpayers money there in business to make a profit.

We literally just had a fucking royal commission

Very quick to reduce my term deposit interest from 2% to 1.45% higher than the 0.25% bank rate drop

Considering the banks don’t borrow the money from the Govt for lending purposes. What right does the Govt have to set interest rates for them This is plain stupid..and by the way, how about the poor savers who are getting lower returns on their savings...

Should they not be looking at personal loan and credit card interest?

Another slap on the wrist- I bet they’re scared this time .... 🙄

Labor's Paul Keating deregulated the banking sector in the early 90s......they don't have to pass on any rate cut if they choose not to. Keating cashed in back then $$$$$$$.

Govt can't do a thing & banks know it....They walked out of the royal commission free, no CEO or executive charged or bank fined for defrauding customers

$500 a year is the same or similar amount of money we were gonna save on energy - fraud fraud fraud

JoshFrydenberg is a fraud and coward

So they'd rather do another time wasting exercise than focus on the economy themselves. Trying to deflect their own deficiencies.

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