Though banks are now more cautious with their lending, National Australia Bank CEO Cameron Clyne says the community blames the banks for the economic crisis and rightly so too. Banks have kept their operations very secret while they risked investors money by loaning out money to potential defaulters.
He says banks should be more open about their interest rate tables and fees. Investors in the community are hit all the time by getting lower interest than they believe they will get, and being hit by fees without being informed why. Fees in particular have technical wording rather than "real life" wording.
In short, he says people believe that banks are robbing bastards. He further warns that banks will increase interest charged on loans or keep them the same despite the central bank lowering rates. People will see this as plain robbery. They will call for government intervention.
He says banks should be more open about their interest rate tables and fees. Investors in the community are hit all the time by getting lower interest than they believe they will get, and being hit by fees without being informed why. Fees in particular have technical wording rather than "real life" wording.
In short, he says people believe that banks are robbing bastards. He further warns that banks will increase interest charged on loans or keep them the same despite the central bank lowering rates. People will see this as plain robbery. They will call for government intervention.
Economics by Ty Buchanan
