Banking cartel ups their cut
Bank margins on low rate credit cards have blown out by 3.5 per cent since July 2007 according to data from the Reserve Bank. Margins on variable rate mortgages have increased by 0.7 per cent.
The competition regulator, the ACCC, says small and medium business loan margins have increased by about three per cent. The ACCC is concerned that decreased competition between banks is leading to cartel-like behaviour and legal price setting.
Source: The Australian Financial Review