The four major banks have refused to follow the lead of the Reserve bank and reduce their interest rates charged on borrowings.
Last financial year these four banks amassed a whopping 24 billion dollars in super profits. They are four of the most profitable banks int her world, protected by the government from failure. Their largesse is a crime.
Not passing on the rate cut when they are enjoying record profits at a time of economic downturn is thumbing of the nose at ordinary Australians. Our housing market is already at record highs. Mortgages are the true thief by the rich upon the struggling working classes.
The banks use as an excuse increased borrowing costs. But when they have had reduced borrowing costs they have not passed on the difference to struggling families. This is taking from the poor to give to the rich. It is a disgusting breach of trust.
Our banks were shored up by government during the global turndown. They return the favour by refusing to pass on official rates cuts. It is unconscionable of the banks to continue to charge exorbitant fees and enjoy super profits whilst many small businesses and families struggle to meet the costs of their borrowing.
We need a super profits tax, and greater regulation of the banking sector. They are an essential service, and have obligations that go beyond simply maximising profit. It is time the government got tough and called them to account.