With profits expected to go even higher Shearer said the government should be “demanding a better deal for New Zealand households”.
“An example of where Kiws are paying through the nose is on credit card interest. We still pay around the same interest rate on them – more than 17 per cent – as we did eight years ago, despite bank borrowing rates plummeting five points to 3 per cent in that time.”
What does Shearer want the Government to do? Pass a law so the Cabinet sets credit card interest rates like Muldoon used to almost do?
Credit card interest rates vary from 13.6% to 24.95%. I prefer competition to government dictate.
Shearer said Kiwis were a “soft target and a nice little earner” for Australian banking giants, who were using “unfair” tactics on New Zealanders.
What is unfair exactly?
With Australian banks making a profit of about $1000 off every adult and child in the country it was time for the Reserve Bank to put a microscope on the issue, he said.
An average can be misleading. If like me you have a large mortgage, then your bank makes a large profit out of you. If you don’t have a mortgage they make a small profit. And on my credit card they make nothing from me directly, as I pay my account off every month.