ID :
49215
Thu, 03/05/2009 - 16:57
Auther :
Shortlink :
http://m.oananews.org//node/49215
The shortlink copeid
Australians pay record bank fees: report
Australians pay the western world's highest banking fees, a new report says, and the
opposition claims the government's doing nothing about it.
Australians cop fees that are 22 per cent higher than those paid by Britons, and 11
per cent higher than what Americans pay, says the report released on Thursday.
The opposition says the federal government has failed to pressure banks to drop
their charges.
"(Prime Minister) Kevin Rudd and (Treasurer) Wayne Swan should be applying pressure
to the banks and asking banks to support Australia during these tough times,"
financial services spokesman Chris Pearce said.
"Wayne Swan said he would do something about this issue last August. Quite clearly
they've done nothing to wipe out unfair costs in the banking system.
"The government has provided, by way of the bank guarantee and other policies, a lot
of support to the banking system."
Report author Fujitsu Consulting said average Australian households paid about
$1,000 in bank fees each year, compared to $749 in Britain and $850 in the United
States.
Fujitsu's Martin North said a lack of competition in Australia meant local banks
were collecting $5 billion in fees from consumers, making them the most expensive in
the western world.
"In the context of the global financial services crisis, banks will be attempting to
buttress profits by lifting fees," Mr North said.
"The average household is, in our view, paying up to $200 more each year than they
should thanks to the wide range of fees and charges levied in Australia, and to the
lower levels of competition in the market."
The Australian Bankers' Association (ABA) disagreed with the report's findings,
saying its research showed bank fees in Australia rank about mid-range.
"There is a lot of competition in the marketplace for banking products and
services," ABA chief executive David Bell said.
The Fujitsu research found many consumers were apathetic when it came to bank fees.
ATM owners are now allowed to directly charge consumers.
Comment was being sought from Mr Swan.
opposition claims the government's doing nothing about it.
Australians cop fees that are 22 per cent higher than those paid by Britons, and 11
per cent higher than what Americans pay, says the report released on Thursday.
The opposition says the federal government has failed to pressure banks to drop
their charges.
"(Prime Minister) Kevin Rudd and (Treasurer) Wayne Swan should be applying pressure
to the banks and asking banks to support Australia during these tough times,"
financial services spokesman Chris Pearce said.
"Wayne Swan said he would do something about this issue last August. Quite clearly
they've done nothing to wipe out unfair costs in the banking system.
"The government has provided, by way of the bank guarantee and other policies, a lot
of support to the banking system."
Report author Fujitsu Consulting said average Australian households paid about
$1,000 in bank fees each year, compared to $749 in Britain and $850 in the United
States.
Fujitsu's Martin North said a lack of competition in Australia meant local banks
were collecting $5 billion in fees from consumers, making them the most expensive in
the western world.
"In the context of the global financial services crisis, banks will be attempting to
buttress profits by lifting fees," Mr North said.
"The average household is, in our view, paying up to $200 more each year than they
should thanks to the wide range of fees and charges levied in Australia, and to the
lower levels of competition in the market."
The Australian Bankers' Association (ABA) disagreed with the report's findings,
saying its research showed bank fees in Australia rank about mid-range.
"There is a lot of competition in the marketplace for banking products and
services," ABA chief executive David Bell said.
The Fujitsu research found many consumers were apathetic when it came to bank fees.
ATM owners are now allowed to directly charge consumers.
Comment was being sought from Mr Swan.
