A recent Fairfax newspaper report has claimed that 4 of Australia’s pioneering banks had been charging the borrowers with rates higher than their own costs in the wake of the global financial crisis.
The report has added that the figures released by RBA showed that individual buyers had been paying more than the bank profits.
It further claimed that one of the borrowers with fixed-rate home loan for three years has been paying between $75 and $125 in their monthly installment.
The 4 banks, alleged to have committed the act, are New Zealand Banking Group Ltd., Commonwealth Bank of Australia Ltd., National Australia Bank Ltd. and Westpac Banking Corporation Ltd. They showed remarkable combined pre-tax profits worth $14 billion in the 6 months of current financial year.
The findings have added to the troubles the country has been facing. The report has also claimed that the economic meltdown was used as a shield for the misconduct.
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