Swan opens door for ACCC bank crackdown
The Treasurer Wayne Swan has indicated the Labor Government would be willing to hand more power to the competition regulator should it wish to investigate the big four bank’s interest rate movements.
Speaking this morning on ABC’s AM program, Swan said the Australian Competition and Consumer Commission (ACCC) would be within its rights to more closely examine the interest rate movements made by the big four banks, and said he would be happy to hand the ACCC more power to allow it to do so if that was required.
His comments came ahead of the Reserve Bank’s meeting this afternoon and amid speculation banks may raise their rates beyond the official line.
Swan said there was no reason for banks to raise their rates beyond the official rate, pointing to the strong profits realised by the big banks post the financial crisis.
The banks are citing higher funding costs as the basis for more interest rate rises.
Swan described the reduction in competition in the banking sector, and the increased power delivered to the big four banks, as one of the negative side effects of the financial crisis. Swan said the Government would now do what it could to restore competition by supporting smaller lenders and through other measures.
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