(16 December 2010 – Australia) Big four bank NAB has hit out at recent bank bashing, saying that the political and public backlash the banks have received over recent rate rises is unjustified and unfair.NAB also stirred the pot further by calling for its peers to move their interest rates independently of the Reserve Bank’s official decisions.
Michael Chaney, chairman at the bank, said at Wednesday’s annual general meeting that the bank’s borrowing costs were higher as a result of strong competition for deposits and restricted offshore wholesale markets.
Mr Chaney reinforced comments made by the bank’s chief executive, Cameron Clyne, saying that the Reserve Bank’s official cash rate movements had little impact on the borrowing costs of the major banks.
‘Such criticism is unjustified and unfair,’ Mr Chaney told AAP.
‘The fact is that the fundamental premise upon which bank bashing is based that Australia’s banking sector is insufficiently competitive, and that it is less competitive than before the GFC – is false,’ Mr Chaney said.
‘This is a fiercely competitive industry and one in which profit returns have fallen markedly since before the GFC.’