Banking Regulation is needed now - action not words

Alliance Party media release FOR IMMEDIATE RELEASE Thursday 14 May 2009

Alliance Economic Development spokesperson Quentin Findlay says that Finance Minister Bill English should stop talking and start acting to regulate banks to curb excessive profiteering.

Yesterday, the 4 main Australian Banks had announced $4.5 Billion in total profits. This amount led to Finance Minister, Bill English to call on the Banks to explain to their customers about their interest rates.

Mr Findlay says Banks were profit making machines and that it was hardly surprising that they were not going to 'share the load' with their 'credit worthy' customers as was naively pleaded by both the major parties.

"National and Labour need to join everyone else in the real world, where households and businesses are being hit by the recession."

He says merely asking Banks to behave was not going to work.

"There need to be economic stabilisation measures and regulation. The lack of regulation in the banking sector has led to Banks either ignoring the wishes of their customers, the Government and the Reserve Bank, or giving them lip service."

"Forcing the Banks to put some of their excess profit in areas that enabled people to get lower interest rates, grants, or loans would encourage economic growth and development."

ENDS

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