The big banks are being accused of profiteering, as they raise the interest rates on borrowers without paying more interest to savers. New figures show one of the big banks is making a million dollars an hour.
The Big Banks Accused of Cashing In On the Cost of Living Crisis
The cost of living crisis has been a major issue for many with prices for many essential goods increasing faster than household incomes. The big banks have been accused of cashing in on this crisis, as they continue to benefit from high interest rates and increased fees for services such as overdrafts. With the economy already fragile, these banks are taking advantage of those struggling to make ends meet by charging them more for their services.
It is important that the government takes action to protect those affected by the cost of living crisis and ensure that big banks are not profiting from it. This could include introducing regulations to limit fees charged by banks or providing financial assistance to those who need it most. Additionally, measures should be taken to encourage businesses to pay their employees a living wage so that they can afford basic necessities without having to rely on expensive credit or other forms of borrowing.
The cost of living crisis is having a devastating impact on people’s lives across the country, and it is essential that action is taken now to protect those affected and prevent big banks from taking advantage of them.
Another Of Big Four Banks Posts Record Profits
Another one of the major four banks has announced record profits as Australians struggle to balance their budgets in light of the increasing interest rates. NAB said that its revenue had benefited from the high interest rates that the Reserve Bank of Australia had set in an effort to fight inflation. According to the bank, first-quarter cash earnings for 2023 increased by 18.7% to $2.15 billion from the corresponding quarter in 2022.
The bank’s nett interest increased 12 basis points to 1.79 percent, while the unaudited statutory nett profit was $2.05 billion. Cash earnings increased by 23% from the second half of the 2022 fiscal year. The bank recognised that as loan repayments increase and interest rates rise, economic growth and housing values have softened.
Due to the effect of lower housing prices and business lending volume growth, the bank’s credit impairment charge, which refers to the decline in value of an asset such a house, was $158 million.
The bank’s credit impairment charge, which refers to the decrease in the value of an asset like a house, was $158 million as a result of the effect of reduced housing prices and rise in business lending volume.
A cost-of-living issue and soaring mortgage payments have squeezed many household budgets across the nation. Since May of last year, when the central bank began raising the cash rate from an all-time low of 0.10 percent to its current level of 3.35 percent, interest rates have increased significantly. Due to the nine straight rate increases, homeowners are struggling to come up with the cash to make their mortgage payments. Borrowers have seen their monthly repayments rise by $969 for a loan of $500,000.
