Petition - Empower our government and ACCC to enforce RBA policy

The problem is that not all of the money that banks lend comes from the RBA. About 30% to 50% comes from other places like superannuation funds and overseas sources.

The Aussie dollar is very strong at the moment so importing money to Australia is very expensive. This cost is passed onto banks borrowers in the form of interest rates.

As a result it is not commercially reasonable for RBA pricing to be forces upon lenders, unless the RBA is willing to underwrite all of the money lent.

Additionally banks costs fluctuate depending on many other factors, such as their deposit levels, mortgage arrears, etc. The RBA or ACCC has no influence over these factors.

The ACCC has the power to ensure that the banks don't collude their pricing. Unfortunately government intervention in 2008 via "bank guarantees" effectively destroyed many of the smaller players in the market. The banks dominate the financial system becuase the government and ACCC handed it too them.

If you want better prices from the banks, first level the playing field to allow smaller lenders to compete, or better still, provide insentives for them to do so.

It's worth noting that to date, the government regulations over the last few years have done nothing to increase competition. Removing exit fees has had no decernable effect on people moving. Licensing and regulation has done little but increase costs to financial markets which are in turn passed onto the public.
 
Agreed Pete. Whenever the government gets involved they always stuff it up, and the taxpayer/end consumer is the one who pays for it.
 
As well as having loans on Ip's we have money invested in term deposits in our SMSF so if the banks don't pass on the IR cuts we still benefit as do all people with money in term deposits.

Two sides to every decision.


Cheers
Sheryn
 
Removing exit fees has had no decernable effect on people moving. Licensing and regulation has done little but increase costs to financial markets which are in turn passed onto the public.

The irony is the exit fees regulation affects smaller lenders more than the banks.

They were for the most part the ones with brutal exit fees usually because they had special offers for 3 years etc.
 
The irony is the exit fees regulation affects smaller lenders more than the banks.

They were for the most part the ones with brutal exit fees usually because they had special offers for 3 years etc.

The problem is the non-bank lenders had really punitive exit fees for the first 5 years of any mortgage. Some lenders like Ironbark had exit fees north of $5,000 just for a normal mortgage - and the client couldn't leave even though they jacked up the rate to 1-2% above the market price for the loan because of this. And now the non-bank lenders say that brokers should support them - but how can we do that when we lost so much reputation with clients who were screwed by them 3 years ago?
 
Come on you serious... ? You think we're greenies or unions?

I may not be happy with the banks' decisions but I'll let free competition and market forces sort them out
 
Come on you serious... ? You think we're greenies or unions?

I may not be happy with the banks' decisions but I'll let free competition and market forces sort them out

Ex-ACT-ly!! If some banks wish to cut, and others don't, that's a purely commercial decision. Unfortunately, when the papers (eg, Herald-Sun) have front page "The banks are Grinches"-type headlines, the average Joe starts to think that maybe re-regulation is going to help them.
 
The problem is that not all of the money that banks lend comes from the RBA. About 30% to 50% comes from other places like superannuation funds and overseas sources.

The RBA actually funds very little of the money banks lend, as the name suggests, it is only short term funding "overnight". With the potential for international funding markets to stay frozen, don't be surprised to see deposit rates consistently higher than the RBA overnight cash rate and accordingly Mortgage rates higher again.

Competition will heat up not just between the banks, but against alternative places people could be parking their cash, i.e. shares etc as the banks become desperate to get their hands on as much money as they can find to fund their multi-billion dollar deficits, due to over-reliance on overseas money that they have borrowed to fund the Australian housing bubble.

Without all of this money being borrowed from overseas to lend to house owners, the housing market wouldn't be overinflated.
 
Sign this petition, and lets stand united in a show of strength against our banks greed and bully boy tactics. Lets lobby our regulatory body, the ACCC, and our appointed federal politicions to not merely verbally pressure our banks - but to have the legislative firepower to actually enforce.

http://www.ipetitions.com/petition/empower-our-government-and-accc-to-enforce-rba/

If you agree and sign, please spread the word!

I dont think you'll find much support here for re-regulation.... even if we think the banks are greedy... the less government involvement in these things, the better (no matter which government is in power)

I think ANZ has done an excellent PR job this time around... took the lead, gave the full discount, in order to get the positive vibes/spin.
Now that they have that positive goodwill, they have brought out the "bad news" that they are no longer going to base their rates decisions on the RBA, but rather have an independent process.
Not sure how I feel about that decision.... but kudos to their spin doctors.... its been perfectly managed.
 
Sign this petition, and lets stand united in a show of strength against our banks greed and bully boy tactics. Lets lobby our regulatory body, the ACCC, and our appointed federal politicions to not merely verbally pressure our banks - but to have the legislative firepower to actually enforce.

http://www.ipetitions.com/petition/empower-our-government-and-accc-to-enforce-rba/

If you agree and sign, please spread the word!

Somersoft has turned into "a current affair", what uninformed rubbish.

Let's stand united against greed and bully boy tactics by being using greed and bully boy tactics ourselves!

More legislation , excellent, the recent changes to financial regulations have been so brilliantly thought out and implemented let's have more of it, heaps more of it.

If we become any more of a nana state we will all be walking down the street wearing helmets and body shields soon!!
 
Somersoft has turned into "a current affair", what uninformed rubbish.

Let's stand united against greed and bully boy tactics by being using greed and bully boy tactics ourselves!

More legislation , excellent, the recent changes to financial regulations have been so brilliantly thought out and implemented let's have more of it, heaps more of it.

If we become any more of a nana state we will all be walking down the street wearing helmets and body shields soon!!

You DON'T wear a helmet down the street! :eek: Wow, what a risk-taker!
 
Let's bash the banks, after all we're the ones who take the risk. No, it is the shareholders who the banks owe a duty to not the borrowers. Why should the shareholders say to the banks 'drop your rates so that we get less of a return on our shares', yeah right!
 
The banks are running businesses in competition with reach other. Signing online petitions won't achieve a damn thing. If you don't like how you bank behaves, change banks.
 
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