28 February 2008
For immediate release
ANZ National needs to justify interest rate rises
The banks workers union Finsec is calling on ANZ National bank to provide better justifications for yesterday’s decision
to raise mortgage interest rates. ANZ National blames the rise in interest rates on the cost and availability of
international credit in the fallout of the sub prime mortgage crisis.
“Irresponsible lending by overseas banks led to the sub-prime crisis and now New Zealand banks are making customers here
carry the cost of the fallout. That is both unfair on individual households and bad for the wider economy,” said Finsec
Campaigns Director Andrew Campbell.
“Earlier this week ANZ National bank posted a three month profit of $310 million dollars and in the last full financial
year made a profit of over $1 billion. In contrast New Zealand households are carrying more debt than ever before. ANZ
National is pushing their costs on to debt laden households who can ill afford more costs,” said Campbell.
“We think customers and the community deserve a fuller explanation for such a major decision, especially given the
Reserve Bank has not increased the Official Cash Rate this year. In the interest of public accountability we ask ANZ
National the following questions:
1. Who is better placed to carry the additional cost of overseas credit. A bank that is likely to make a billion
dollars in profit or indebted customers?
2. What would be the dollar cost on ANZ National’s projected profit of holding interest rates at their current
levels?
3. How much of the additional revenue earned through the interest rate rise will be repatriated to the banks parent
company ANZ Australia?
“The Commonwealth Bank in Australia recently raised interest rates above the increase in the OCR and were condemned by
Government Treasurer Wayne Swan. Swan said the Commonwealth Bank had a lot of explaining to do to customers. We echo
Treasurer Swan’s comments and call on ANZ National to do some more explaining,” said Campbell.
ENDS