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Legislate on bank interest payments self regulation has failed



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SENATOR CHERYL KERNOT aSBSHSS$BI ......'.■.,:,.:.'::'ί:'.'·::-:ί: "■ ■ :■ '■ ■ ·

MEDIA RELEASE 5 November 1992 92\593

LEGISLATE ON BANK INTEREST PAYMENTS SELF REGULATION HAS FAILED

The Government should legislate to ensure banks paid interest on daily balances the Australian Democrats said today.

The Democrats were responding to recommendations contained in the latest Banking Committee report, released today, which said many banks were still paying interest on minimum monthly balances instead of daily balances. ..

Democrat Treasury Spokesperson Senator Cheryl Kemot said this was despite a recommendation from the same Committee a year ago that banks move towards paying interest on daily balances.

Senator Kernot called on the Government to legislate to force the banks to comply with the recommendations.

"It is no use proposing that the banks do it voluntarily - they had the chance a year ago to make the changes and they have done nothing."

"Some 35 account types offered by the major banks are still paying interest only on minimum monthly balances." .....

"The banks have been given ample opportunity to demonstrate to consumers that deregulation and competition will result in a better deal for customers."

"Since former Treasurer Keating de-regulated the banking industry customers have been slugged with fees on savings accounts, fees on cheque and electronic : transactions, and soon they will be hit with charges for having credit cards."

"Like self-regulation in the television advertising and life insurance industries, self regulation in the banking sector has been a complete failure. The only solution is for the Government to step in and legislate.- : : ^ gi: &

FOR FURTHER INFORMATION CONTACT ^ ± ^ ^ ^

SENATOR KERNOT ON 06 277 3745 OR JENNY MAY ON 07 844 6002

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