1. It has attributed all of the fee income to households which is a glaring error.  It has assumed that banks make profits only from households. This is incorrect. Banks earn income from a variety of sources including businesses, overseas customers, superannuation and funds management, foreign exchange and other trading income.
    
2. The Reserve Bank survey shows that close to 60% of fees are not paid by households but by businesses.
    
3. The estimate of bank fees paid by households is wrong and is about five times higher than Reserve Bank figures would suggest.

Steven Münchenberg, Chief Executive of the ABA, said: “We want all debates about banking to be based on the facts and it is disappointing that data is being fabricated.”

“Our estimate from Reserve Bank figures shows that households pay nothing like $50 a week as claimed by the Australia Institute. The Reserve Bank survey is the most comprehensive and reliable source of fees data for the Australian banking sector. A simple average from this survey shows that households pay about $11 per week on bank fees.”

“There are low cost bank accounts in the marketplace for students and children. There are also flat fee accounts and free accounts for eligible customers.”

“Banks are competing for your business so shop around and find an account which better suits your needs if you want to minimise bank fees,” Mr Münchenberg said.