Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Industry leader “bitterly disappointed” at big four banks

cba  x

cba  x
Francesca Krakue 1 minute read

A broking industry body has criticised the major banks’ failure to fully pass on the RBA’s historic cash rate decision.

Peter White of the Finance Brokers Association of Australia (FBAA) has said it was “bitterly disappointing” that the Commonwealth Bank of Australia (CBA), National Australia Bank (NAB) and ANZ failed to pass on in full the Reserve Bank’s 25 basis point cut.

“It was disheartening to find the CBA and NAB not passing on the full reduction which most banks passed on during the last official rate reduction in May,” Mr White remarked.

“Banks must protect shareholders but they must look after their customers,” he said.

Mr White also questioned the CBA’s decision to commence its new rate on 19 August, three weeks after the Reserve Bank’s decision.

“When rates rise the lenders lift their variable rates immediately,” he said, “Again it is the customer who is being treated poorly”.

For customers who have fixed loans, Mr White suggests they think carefully about the prospect of refinancing and a potential move to a variable loan.

“My advice would be to have a mixture of both fixed and variable, but be aware that rates will inevitably climb, perhaps sooner rather than later,” he concluded.

Advertisement
Advertisement

PROMOTED FEATURES


[Related: Big banks react to cash rate call]

 

Industry leader “bitterly disappointed” at big four banks
cba  x
TheAdviser logo
cba  x

 

more from the adviser
parliament Final clawback regulations released

The final regulations for mortgage brokers focusing on the new cl...

KAte Carnell ASBFEO ASBFEO reiterates call for more SME support

SME advisers – including brokers, accountants and financial pla...

loan application AMP lowers floor rate, updates HEM benchmark

The non-major has announced a number of changes to its credit pol...

FROM THE WEB