Australia's big banks have been urged to "share some love" by passing on this week's Reserve Bank interest rate cut in full.
Assistant Treasurer Bill Shorten said the big four - ANZ, Commonwealth Bank, National Australia Bank and Westpac - were doing serious damage to their brands by remaining silenton Tuesday's RBA decision.
"No one wants to go first or last - that's not leadership," Shorten told Sky News yesterday.
He said the federal Government was not against banks making profits, but he urged the banks to "share some love with their customers".
The big banks are yet to say whether they will pass on the RBA's 25 basis point cut this week, saving them a combined A$5.5 million a day.
But a number of small banks, with credit unions and building societies, have already passed it on in full.
Treasurer Wayne Swan said there was "no excuse" for the big four not passing on the full rate cut.
"At lot of families are under financial pressure, especially at this time of year, and it is disappointing," Swan told ABC Radio yesterday.
However the Treasurer said if customers weren't happy with their financial institutions they should change lenders.
"Passing this rate cut on in full is in no way a threat to their viability," Swan said.
Australian Bankers' Association chief executive Steven Munchenberg conceded each of the big four banks would be waiting for the others to move first on rates "to make sure whatever they offer into the market is competitive, or more competitive, than the others".
"But the main consideration is really going to be around 'do we pass it all on as we did a month ago and just absorb those higher funding costs, or is this the point where we have to pass on those higher funding costs to consumers'."
