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Sydney, 31 July, 2003: The Australian Bankers’ Association (ABA) says today’s media release from the New South Wales Minister for Small Business, David Campbell, shows that he is not well informed about the small business banking market.
Mr Campbell has alleged a “lack of transparency in banking services.” This is wrong.
David Bell, Chief Executive of the Australian Bankers’ Association, (ABA) said fees that are charged by banks for products and services are transparent and disclosed for all customers, including small business.
“The variety of bank products for the small business sector is driven by what customers demand – any standardised services would limit choice for small businesses.”
“Any re-regulation would stifle innovation and flexibility in the products that banks can offer customers. The small business banking market is competitive and the sector has a choice of more than 720 products from financial service providers.”
In addition, the NSW Minister has ignored the Reserve Bank of Australia data that shows how the small business sector has benefited from the deregulation of the financial services sector.
The Reserve Bank data shows:
• the fall in interest rate margins has more than offset any increase in fees;
• the reduction in fees on loan products have offset increases in fees for deposit products.
David Bell, Chief Executive of the Australian Bankers’ Association (ABA), said: “The banking sector is keen to see the debate on small business banking based on facts rather than errors, incomplete information or assertion.”
For further information:
Heather Wellard
ABA Public Relations
Phone: 02 8298 0411
Mobile: 0409 830 439
ENDS
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Small Business Banking in Australia, A Research Report, KPMG Consulting February 2002, pages 44-44 |