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Family First Moves to Make Banks Accountable

Press Releases June 25 2009

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Family First Leader Senator Steve Fielding today introduced a bill to make the banks more accountable on interest rates.

Under the Bill the major banks will need to satisfy the Treasurer that their decision to withhold an interest rate cut or to jack up interest rates beyond the Reserve Bank’s official interest rate changes is not contrary to the public interest.

If the major banks do not satisfy these criteria and they insist on moving their interest rates nonetheless, they will lose the commonwealth guarantee which they currently enjoy.

“The banks have been a law unto themselves for far too long,” Senator Fielding said.

“It’s about time the banks were held accountable when they decide to raise interest rates without any plausible reason.

“First the banks failed to pass on the full interest rate cuts when the Reserve Bank was lowering its official rate, now they are looking at jacking up their rates without any proper justification.

“It’s appalling that tax payers should be asked to help prop up the banks with the government’s bank guarantee and then be slugged again with higher than necessary mortgage repayments. Banks need to understand that government assistance comes with responsibility.

“This Bill will remedy this injustice. It will send a clear message to the major banks that they can’t have their cake and eat it too.

“If they want the Australian people to help them, they must be willing to help the people in return.

“Australians have had enough of the greedy profiteering while they are left struggling to pay their bills.

“The Government forces Health Insurance companies to seek approval for health premium increases, so it makes sense we force the big banks to justify interest rate changes that are not in step with the Reserve Bank.”