Federal Treasurer Swan Urges Mortgage Borrowers To Switch To Credit Unions
Federal Treasurer Wayne Swan is advising mortgage holders to switch their lenders from the big four banks to credit unions. Mr. Swan is gearing up to reveal his proposals for a second set of banking reforms which include measures to curtail mortgage exit fees.
The Treasurer is his weekly address, said that smaller lenders, including regional banks, building societies, credit unions and wholesale lenders were a competitive force to be reckoned with.
“That’s why I’ve been working for years to support their ability to fund cheaper loans through our $16 billion investment in residential mortgage-backed securities so they can really give the big banks a run for their money. That’s why we’ve cracked down on unfair mortgage exit fees, which has already led two of the major banks to remove theirs in direct response, and it’s why we brought in an account switching package to help consumers more easily move their deposit account.” Mr Swan said.
Joe Hockey, shadow Treasury spokesperson for the coalition opposition writing in an op-ed featured in The Australian says they time is right for the banking industry to undergo further reforms. Reforms which reflect the political reality of the post global financial crisis world, that banks have effectively become “to big to fail”
“The Coalition is not calling for more regulation to address these challenges. It is not calling for greater interference in the commercial decisions of banks. It is calling for measures to facilitate greater competition in the provision of financial services so the market operates more effectively. It is also calling for specific recognition of the additional support provided to banks by taxpayers, a review of whether that support should continue, and if so, what the community should expect in return. The governor of the RBA has said banks are not like other businesses. We agree. It is time that unique position was formally recognised.” Mr. Hockey Said.
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plenty of talk about home loan inerest rates how about tem deposits rates !!!!!!!!!!!!!!!!!!!!!!!