15 March 2010 Editor "The Sydney Morning Herald"  “The Age” Letters to the editor Delivery by email: letters@smh.com.au letters@theage.com.au Dear Sir or Madam, Re today’s editorial:”Action needed on bank gouging” Your call for yet another bank inquiry is unwarranted as the industry has, in the last 12 months, been subjected to at least nine inquiries, on many different aspects of banking. Parliamentary Committees have examined bank mergers, bank funding guarantees, employee share schemes, consumer credit, unfair contract terms, financial products and services, personal property securities, anti-terrorism laws and the impact of the global financial crisis on regional Australia regarding access and cost of finance – just to name a few. And soon the Australian Bankers’ Association will appear at a major inquiry into lending to small business. Your call seems to be based on last week’s assertion by the Prime Minister that banks are ‘gouging’. I disagreed with Mr Rudd and pointed to the facts.  The overall net interest margin for banks is around the same level as when the global financial crisis started - in August 2007. The current level is very low in comparison with historical data.   We are quick to forget that it was irresponsible lending by overseas banks which triggered the global financial crisis and is causing the social dislocation currently being experienced in some countries. Australia’s banks did and must continue to make responsible lending decisions, including decisions on the price of credit, so that our strong economic growth is underpinned by a solid banking sector. Yours sincerely, Steven Münchenberg Chief Executive Officer Australian Bankers’ Association