RESERVE BANK CONFIRMS BANK CUSTOMERS ARE WINNING Sydney, 22 May, 2000: Australian Bankers' Association (ABA) said bank customers are continuing to benefit from increased competition and technology-based services in the banking and financial services industry. Jeff Oughton, acting CEO of the Australian Bankers' Association, said the latest research from the Reserve Bank of Australia confirmed that both household and business customers have continued to gain from the savings associated with lower interest rate margins, being only partly offset by higher fees and charges. The Reserve Bank of Australia research was today presented to the House of Representatives Standing Committee on Economics, Finance and Public Administration in Melbourne. The committee chair, David Hawker MP, was pleased with the trend noted above but was very concerned about whether low-income bank customers were benefiting from the banks' pricing practices. In response, Jeff Oughton, acting CEO of the Australian Bankers' Association, noted, "Many banks offer all customers fee-free accounts whether you are a low or a high income earner. About 75 percent of bank customers make fewer than eight transactions a month. In addition, if you are in that majority, you don't have to pay transaction fees, with banks offering on average eight fee-free transactions a month." "Banks are re-couping some of the costs on the range of services offered, such as over the counter, ATMs, EFTPOS, telephone and internet banking. From the customer viewpoint, I would suggest that for the safety and security of your savings, account keeping, access to 24-hour telephone banking, to 260 000 EFTPOS terminals, more than 9 000 ATMS, 12 000 branches and agencies, these services represent value relative to fees and charges," said Mr Oughton. Mr Oughton also said the Reserve Bank confirmed the good news on housing and business fees per loan - both were down in 1999. For further information contact: Heather Wellard ABA PR Phone: 02 8298 0411 Mobile: 0409 830 439     ENDS Also see our website: www.bankers.asn.au May 22, 2000, 07/00