Sydney, October 2, 2003: The Australian Bankers’ Association says the Reserve Bank of Australia’s figures[1] released today confirm the user pays trend in bank fees.

It is important to see the figures in context of four key facts:

1. user pays is a much fairer and transparent system of charging customers for banking services compared to the past when services like cheques were paid for through higher interest charges;
    
2. many bank customers do not pay any fees at all because they transact within fee-free limit conditions on their accounts;
    
3. basic bank accounts are available where eligible low income customers can access a basic level of service at minimal or no cost;
    
4. and finally, bank interest rate margins have fallen considerably, meaning customers with loans are making large savings in interest repayments. (The Reserve Bank of Australia noted in a recent report that “…at an aggregate level, the reduction in interest margins has significantly outweighed the rise in fees.”)[2]

For further information:

Heather Wellard

ABA Public Relations

Phone: 02 8298 0411

Mobile: 0409 830 439