A case for banking regulation

Posted by on August 2, 2008, 10:35am, 265 views

Talk is rife the Reserve Bank will lower official interest rates, but the banks won’t pass on the reduction to customers.

The banks are crying poor about “funding costs” on the wholesale market.

Sorry, but they really have to accept a small drop in profits and pass on the reduction if it occurs.

If they don’t, the government should pressure them and if that doesn’t work they should legislate.

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