1 00:00:00,000 --> 00:00:02,240 Speaker 1: The battle of the bank bs is back. B and Z, 2 00:00:02,279 --> 00:00:04,720 Speaker 1: who announced their profit last week, talked to the strong 3 00:00:04,960 --> 00:00:08,280 Speaker 1: competition out there, but I hope their margin went up 4 00:00:08,520 --> 00:00:10,520 Speaker 1: up six points to two point four to three. So 5 00:00:10,960 --> 00:00:13,080 Speaker 1: if there's so much competition, how can the margins up? 6 00:00:13,560 --> 00:00:15,680 Speaker 1: Then came the claim from the Reserve Bank, among others, 7 00:00:16,040 --> 00:00:17,880 Speaker 1: that the big banks are being tardy when it comes 8 00:00:17,920 --> 00:00:20,200 Speaker 1: to passing on the RB cuts to us punters. Now, 9 00:00:20,280 --> 00:00:23,680 Speaker 1: smaller banks are sharper, apparently SBS. They claims they've hoovered 10 00:00:23,760 --> 00:00:27,720 Speaker 1: up by almost six thousand new customers as changing banks 11 00:00:27,720 --> 00:00:30,480 Speaker 1: has become easier. Remember, SBS last week put out their 12 00:00:30,480 --> 00:00:32,720 Speaker 1: three point nine to nine money limited to certain people 13 00:00:32,720 --> 00:00:35,080 Speaker 1: but a market leader. Nevertheless. Now tied into all of 14 00:00:35,120 --> 00:00:37,919 Speaker 1: this is the retail bank's long held argument that the 15 00:00:37,960 --> 00:00:41,400 Speaker 1: margins higher because they need the cushion because the Reserve 16 00:00:41,440 --> 00:00:43,760 Speaker 1: Bank makes them store away too much money for troubled times. 17 00:00:43,800 --> 00:00:46,879 Speaker 1: But but, but, but but those rules are changing and 18 00:00:46,960 --> 00:00:49,520 Speaker 1: changing in the retail bank's favor. In other words, less 19 00:00:49,560 --> 00:00:53,639 Speaker 1: money is required. Therefore, in theory smaller margins. You can 20 00:00:53,640 --> 00:00:55,800 Speaker 1: also put in there the simple truth that has always 21 00:00:55,840 --> 00:00:58,320 Speaker 1: been in play. There is nothing stopping us shopping around. 22 00:00:58,440 --> 00:01:00,440 Speaker 1: We have a good number of retail banks, and they 23 00:01:00,480 --> 00:01:02,680 Speaker 1: do do deals. I know I've done deals. Some banks 24 00:01:02,720 --> 00:01:05,520 Speaker 1: will shave decent margins to get your business. Trouble is 25 00:01:05,959 --> 00:01:07,959 Speaker 1: a lot of us are too lazy to try. Moaning, 26 00:01:08,040 --> 00:01:10,360 Speaker 1: you see is easier than hustling. So who's right here? 27 00:01:11,120 --> 00:01:14,080 Speaker 1: Are there we tel banks tardy? Is it a major issue? 28 00:01:14,240 --> 00:01:16,399 Speaker 1: Is Nikola Willis right when she says things, and by 29 00:01:16,440 --> 00:01:18,800 Speaker 1: things she means rules need to change. I, of course 30 00:01:18,840 --> 00:01:21,760 Speaker 1: have long argued Willis's too much hype and it's not 31 00:01:21,840 --> 00:01:23,759 Speaker 1: all that bad. But I'll tell you what. I'm increasingly 32 00:01:23,760 --> 00:01:26,320 Speaker 1: moving towards accepting that I might be wrong on this. 33 00:01:27,000 --> 00:01:30,039 Speaker 1: As the RB points out, as wholesale rates drop, the 34 00:01:30,080 --> 00:01:33,240 Speaker 1: margins have risen, and on latest numbers they are keeping 35 00:01:33,440 --> 00:01:38,440 Speaker 1: on rising. Maybe God forbid. Adrian All was right when 36 00:01:38,440 --> 00:01:40,440 Speaker 1: he used to come on this program and lambas the 37 00:01:40,440 --> 00:01:42,880 Speaker 1: banks for making too many excuses. What I do know 38 00:01:43,520 --> 00:01:46,280 Speaker 1: is the conditions are increasingly right, either through the wholesale 39 00:01:46,319 --> 00:01:48,840 Speaker 1: rates or the changes to reserve bank rules for us 40 00:01:48,880 --> 00:01:52,600 Speaker 1: to see one the margins fall, and two the cuts 41 00:01:52,640 --> 00:01:55,880 Speaker 1: to be passed through in full and faster, and the 42 00:01:55,960 --> 00:01:58,000 Speaker 1: longer that takes to happen. The more we need to 43 00:01:58,040 --> 00:02:01,920 Speaker 1: see the big banks potentially as a problem and bad 44 00:02:01,960 --> 00:02:05,760 Speaker 1: actors in the economy. For more from The Mic Asking Breakfast, 45 00:02:05,920 --> 00:02:09,240 Speaker 1: listen live to News Talks at B from six am weekdays, 46 00:02:09,480 --> 00:02:11,519 Speaker 1: or follow the podcast on iHeartRadio.