The Australian Bankers’ Association (ABA) issued a statement yesterday in response to the banks' recent decision to lft rates, stating that it sees no evidence of unjustifiable interest rate rises.
The association estimates that average funding costs for its member banks have risen by around 30 basis points, yet it says the average bank rate increase has been only around 14 basis points.
“By absorbing part of this funding increase, banks have shielded customers to some extent from the impact [of rising funding costs],” the statement said.
In response to Federal Treasurer Wayne Swan’s calls last week to remove the expensive barriers to switching home loan providers, the ABA said:
“The ABA investigated this issue a few years ago and concluded that there were no significant switching problems with home loan providers.”
“Australian Bureau of Statistics data shows that around 30 per cent of new home loans (owner occupied) are refinances, indicating there are not substantive refinancing difficulties.”