Once upon a time in the land of Oz
There was a bank
It was owned by the people, we were all shareholders
Yes it's name was The Commonwealth Bank.
Guess what they used to pass on all interest rate cuts.
Now it's not owned by us, so, we now see the result. Without an honest broker to compete with, all the banks they now gouge as much profit as possible.
They are not overly worried about what people think, why because there is nowhere else people can go, they have a monopoly. (or at least a very cozy relationship).
Think about electronic banking for a moment, that stopped us being paid in cash, the banks said it would save them truckloads of money and save us the consumers heaps.
What happened, they discovered they could charge huge fees on every transaction, even transactions that were free when cash was used.
As for doing anything over the counter, forget it, it costs heaps!
The amount of profit derived from fees has risen to obscene levels.
Nowadays they don't even pass on rate cuts, but guess what, any rate rise is passed on immediately, probably with a bit added on for good measure.
Australian Banks are continuing to rip of Aussies, should we be thinking of a peoples bank once again, because governments seem unable to have any effect.
If they can't be controlled any other way, join them in a commercial way with some real competition.
There is one thing for sure, a peoples bank would never loose money.
