Banks accused of ripping off businesses
(20 June 2011 – Australia) The Australian Chamber of Commerce and Industry (ACCI) launched an attack on the major banks, accusing them of hiking lending fees to business owners to cover the earnings shortfall after cutting household fees.
The Reserve Bank this week estimated that business fees hit A$6.87 billion in 2010, up nearly 14 percent.
The major banks in the past year have slashed consumer fees in a bid to bolster market share.
ACCI chief executive Peter Anderson said Australian businesses were clearly being charged more to subsidise the reduction in household fees, even though business credit demand had been subdued.
'This is proof the banks have been offsetting revenue from housing by slugging their business customers,' Mr Anderson said.
'The banks are clearly taking advantage of the circumstances of business customers by hiking the fees for unused loan facilities.
The Australian Bankers Association chief executive Steven Munchenberg said the business fee increase was the result of businesses turning to the banks during the global downturn while capital markets were effectively closed. However, the increased business loan fees are being felt across most industries.
The major banks in the past year have slashed consumer fees in a bid to bolster market share.
ACCI chief executive Peter Anderson said Australian businesses were clearly being charged more to subsidise the reduction in household fees, even though business credit demand had been subdued.
'This is proof the banks have been offsetting revenue from housing by slugging their business customers,' Mr Anderson said.
'The banks are clearly taking advantage of the circumstances of business customers by hiking the fees for unused loan facilities.
The Australian Bankers Association chief executive Steven Munchenberg said the business fee increase was the result of businesses turning to the banks during the global downturn while capital markets were effectively closed. However, the increased business loan fees are being felt across most industries.
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