Bandit banks !

It has become abundantly clear that the big four Australian banks are not good corporate citizens !

When interest rates were rising their reaction was immediate. Within hours they released media statements claiming the need to increase mortgage interest - and that such a rise would be applied immediately.

When rates started to fall it was a different story. They waited and procrastinated amid rumours that the decrease would not be passed on, and finally agreed to a partial rate decrease for their long suffering customers.

But even that had a sting in the tail. Days and days passed before the actual application of the decrease would occur - and for each day that the old rates applied each of those banks added over a million dollars extra profit to their bottom line - out of the pockets of severely distressed mortgage customers.

The excuse from the banks is that the cost to them of obtaining fresh money has increased. What it really means is that they are not prepared to accept the natural rise and fall of profitability from the market place.

What they are doing is just as unacceptable as a merchant that hikes the cost of batteries, food and survival gear when a flood or other natural calamity leaves people desperate.

It is called " profiteering ".

They can get away with it only because they have a near monopoly - further enhanced by their action in absorbing most non-bank lenders when this credit crisis hit.

Remember the days when there were over a dozen independent banks operating in Australia - and some were owned by state governments - and one was owned by the Commonwealth ?

The giant insurance companies turned themselves into investment houses - and now some of them are likely to be granted a banking license.

With more competition in the banking field it will be interesting to see if " the big four " still have the hide to treat their customers with disdain !