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Banks Profits Soar While Economy Crawls

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Fuseworks Media
Fuseworks Media
Banks Profits Soar While Economy Crawls

With a massive resurgence in profits that significantly outperforms growth in the rest of the economy it is time for the Australian banks to sign up to a Better Banking Charter says bank workers' union Finsec. The big four Australian owned banks posted profits of nearly $2 billion in the last financial year.

Both Finsec and its sister union the Finance Sector Union of Australia are calling on the banks to sign up to their Better Banking Charter to increase accountability for the sector.

"In Australia these banks are facing customer and community outrage over interest rate and fee gouging and massive CEO bonuses. It is time to set some fair rules to ensure that we don't see more of these tricks in New Zealand," said Finsec Campaigns Director Andrew Campbell.

"The banks are operating as if they are in a separate economy. While many workers and businesses are still struggling the big banks capacity to make huge profits remains."

"The Better Banking Charter can aid economic recovery by keeping jobs in the industry and ensuring customers are not paying higher interest rates than they have to."

"The charter sets out what the average Kiwi would consider fair. That banks don't increase interest rates more than they have to and that jobs are not sent overseas or cut while profits rise," said Campbell.

"The Household Labour Force Survey released this week shows unemployment remains high. 8,600 jobs have disappeared from the finance and insurance services sector alone in the last year. In the case of the big banks there should be investment in jobs rather than cuts."

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