Australian banks should heed the RBA’s advice to expect lower rates of credit growth, and to support that expectation by relieving the pressure on bank workers, said the Finance Sector Union.

“The Reserve Bank is clearly signalling concerns about levels of person debt but is missing part of the problem – banks and other credit providers addiction to the practice of pushing debt,” said Acting FSU National Secretary Rod Masson.

“Bank workers who have their pay and job security tied to their ability to sell debt to consumers are under significant pressure to continue to provide credit to their customers, and the banks need to let up on them and relieve this pressure.”

“Forcing employees to meet volume based sales targets, like Westpac’s current Deal A Day expectation for example, runs counter to the advice of the RBA,” said Rod Masson.

“Workers in the finance sector want to be rewarded for providing professional service and meeting customers’ needs, not constantly monitored and penalised if they don’t take every opportunity to offer another line of credit to their customers.” 

 “With personal debt in Australia ballooning, lenders need to provide credit responsibly and in the customers’ interests, not the providers',” said Rod Masson.

The Reserve Bank’s bi-annual Financial Stability Review advises banks to accept the changed market conditions, and warns that attempts to sustain earlier rates of domestic credit growth could induce banks to take risks that may subsequently be difficult to manage.

“It would be a mistake for Australian banks to think that surviving the GFC means they can take risks now,” said Rod Masson.

“The community needs a stable, secure finance sector particularly the 400,000 plus workers employed in finance to provide essential financial services. Risky behaviour will end in tears, injuring workers and the community alike.”

Ends

Spokesperson:  Rod Masson  0408 374 677
Media:   Leanne Shingles  0423 821 773