Stern criticism this week for our big banks from Federal Member for Maranoa David Littleproud who is demanding that the big banks “come clean” and explain why small business and producers aren’t able to access the same deposit interest as households.
“It’s clear to me banks are playing an active role in undermining growth in our economy and the variance between small business – including farmers – and individual customers is evidence of that.”
Mr Littleproud says an examination of interest bearing accounts and, in some cases, term deposits sees small businesses accruing very slim interest margins (like 0.1% in the worst case).
“That’s why I believe banks need to explain why small businesses are offered substandard rates that are less than one-fifth of the rate afforded to household rates.”
He says it gets no better for farmers.
“The banks also continue to fail to provide offsetting arrangements for Farm Management Deposits, despite my continued calls to do so.”
MR Littleproud says many of these businesses are run by local mums and dads and are having to unfairly compete against the big corporates.
“In most cases, businesses already pay more account fees and have to cough up for regulatory checks. The bank doesn’t absorb these costs; it transfers these additional changes to small business so I can’t see a reason why interest rates between a household, business and farmer are treated differently.”
Mr Littleproud has written to the big banks, calling on them to explain methodology in setting interests rate on deposits across small business and personal customer accounts because it “amounts to millions-of-dollars small businesses are being penalised”.
“If you’re a small business in Maranoa and have experienced issues in relation to your banking needs, I’d like to hear from you.”