Lets see who can do without banks make the first move!

I think banks should offer a tracker loan, where the interest rate is set a fixed margin above the reserve rate. It would give some confidence to the consumer that the bank that originally gave them a rate 1% above the cash rate would stay at that level above the cash rate. Sort of like a mix between a fixed rate and a variable rate.

I don't think they would need to be forced, I have seen it elsewhere and someone will do it soon to negate the disgruntled customers. It should coexist with variable rate and fixed rate loans. Then you could sign up with the bank with a variable rate with the confidence the bank cant double your interest rate overnight if it feels like it.

People used to be comfortable that when the reserve upped interest rates, they would be slugged 25 basis points, and signed their deal with the bank under the assumption that the margin the bank lent above this rate was fixed. Wrong, but banks never did raise outside the reserve until the last few years. The GFC was like a game changer.

So now there is much less clarity about what discount from the standard variable rate (which nobody pays) people are really getting and the margin above the reserve rate is very rubbery.

I think taking away exit fees is good. If the bank can change the interest rates on a whim, the customer should be able to change banks on a whim.

The fractional reserve system of money counterfeiting by the private banks must end.They create money from nothing in their computers to equal the inflation they create and our increases in GDP.They take possession of our GDP and loan it back to us at interest.It is double theft. http://secretofoz.com/

Uh oh. There goes the neighbourhood.

*They create money from nothing in their computers to equal the inflation*

Sheesh, I must get me one of those magical computers that Arjay
keeps mentioning. Sadly Westpac don't yet have one, or the
dividend might be a bit better.

Banks have never played by the rules.They have always made their own.