Clyne unapologetic over variable rates
(4 November 2011 – Australia) Higher funding costs driven by offshore debt markets were cited by National Australia Bank (NAB) chief executive Cameron Clyne as the reason the bank did not pass on the Reserve Bank of Australia’s (RBA) rate cut in full.
Clyne was unapologetic about the move when interviewed by BusinessDay, pointing out that NAB’s variable loan rate was still the lowest in the market.
The decision runs the risk of undermining NAB's recent moves to give its customers a better deal and deliver a different strategy from the rest of the big four banks. Until this week, NAB had been offering better deals in order to improve its retail market share.
While its rates today are still more attractive, the gap between them and those of the others has significantly narrowed.
NAB's standard variable rate now sits at 7.47 percent while ANZ's is at 7.55 percent, Westpac's at 7.61 percent and Commonwealth Bank's at 7.56 percent.
Clyne will now have to explain to his customers why the claim that NAB has broken up with the rest of the banking community now looks more like a short-term separation.
The decision runs the risk of undermining NAB's recent moves to give its customers a better deal and deliver a different strategy from the rest of the big four banks. Until this week, NAB had been offering better deals in order to improve its retail market share.
While its rates today are still more attractive, the gap between them and those of the others has significantly narrowed.
NAB's standard variable rate now sits at 7.47 percent while ANZ's is at 7.55 percent, Westpac's at 7.61 percent and Commonwealth Bank's at 7.56 percent.
Clyne will now have to explain to his customers why the claim that NAB has broken up with the rest of the banking community now looks more like a short-term separation.
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