Media release: BIS report confirms the big four banks value profits above everything else: FSU
Monday, 25 June 2012
The recent report from the Bank for International Settlements (BIS) confirming that Australian banks are the most profitable in the world, calls into question the cost and customer service cutting strategies of the big four banks, the Finance Sector Union (FSU) said today.
“The BIS report today is a myth buster which has exposed our big four banks. This report confirms they enjoy the widest interest margins and lowest costs in the world and yet despite these results, neither customers or workers are seeing the benefits of this profitability,” said FSU National Secretary, Leon Carter.
The report is evidence that there are no excuses for the most profitable banks in the world to be offshoring jobs and services in the finance sector.
“The big four banks have an unhealthy obsession with profit and it is producing a culture of greed that comes at an enormous cost to the workforce and the community,” said Leon Carter.
“Almost 3000 bank jobs have been offshored in 2012 and that has a direct impact on customer service. When combined with the banks’ refusal to pass on interest rate cuts, it is no wonder the reputation of the big four banks in particular is at its lowest point ever. Australians once valued the role their bank played in the community, but that value is being trashed by the banks themselves.” said Leon Carter.
“We want our banks to enjoy profits that are sustainable, but not when it hurts customers and it leaves workers out of jobs”, said Leon Carter.
“The placing of profits above all else mentality of our banks has to end immediately” said Mr Carter, “Australian bank workers are going to work in fear that their job might be the next one sold to the overseas bidder prepared to do it for next to nothing and the community is just not sure when the banks are going to hit them again. Enough is enough”.
“I call on the Government and the big four banks to urgently meet with the FSU to develop a long-term industry vision and plan for the future – a plan that restores the reputation and the value of banks in our community through the establishment of a jobs, skills and training package and an industry emphasis on placing customers’ interest before the interest of executive bonuses and unsustainable profit,” said Leon Carter.
Media: Huw Phillips 0413 624 836
Spokesperson: Leon Carter 0409 946 597