Fielding keen to make banks more accountable on interest rates
June 26, 2009
Family First Senator Steve Fielding yesterday introduced a Bill that he contends will 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 claimed. “It’s about time the banks were held accountable when they decide to raise interest rates without any plausible reason.”
“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,” he added.