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NEW FACT SHEETS DEMONSTRATE AUSTRALIA’S BANKING INDUSTRY IS AFFORDABLE, ACCESSIBLE AND SAFE
Sydney, 3 August, 2004: The Australian Bankers’ Association (ABA) has released five new fact sheets to assist in public policy discussions on the banking industry.
The facts sheets demonstrate that Australia’s banks fufil an important role for their customers, employees and society as a whole. The information provided shows that the Australian banking system is strong and stable, affordable, and provides convenient services that can be accessed even from home.
The main findings of the fact sheets are:
- banks provide extensive basic account banking to the community – there are around 90 accounts offered which don’t attract an account keeping fee and allow six free transactions a month;
- around 40 – 60% of customers pay no account fees whatsoever, depending on their bank;
- the number of banking service outlets offered by banks has expanded from 27 000 in 1990 to 460 000 today;
- Every year, community organisations receive more than $90 million of direct support from banks;
- Australian banks are among the best capitalised in the world – Australia leads in holdings of capital plus reserves, expressed as a ratio to total balance sheet assets, with 11.5%. The comparable figure for the USA is 9.1% and for the UK 5.1%; and
- the Australian banking sectors’ profit margin is consistently robust by world standards. At 1.3% of assets, Australian banks’ profit ratio sits in the middle to upper range on the international league table.
David Bell, Chief Executive of the ABA, said: “Banks are playing their role in helping improve Australians’ financial literacy which includes building understanding in the areas of investment, superannuation, retirement planning and in assisting the most vulnerable sections of the community, many of whom are struggling with financial skills.”
“The ABA’s next project is developing a credit education booklet to assist consumers better understand how to use, choose and manage credit. This publication, ‘Smarter Banking – Make Credit Work for You” aims to help customers and the community become aware of how credit works, how to manage it and the responsibilities that come with taking out a credit card or personal loan.”
The following five fact sheets are available on the ABA website www.bankers.asn.au
For further information:
Heather Wellard
ABA Public Relations
Phone: 02 8298 0411
Mobile: 0409 830 439
ENDS
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