Footnotes

Chapter 2 - Banks' adjustment of home loan interest rates

[1]        Reserve Bank of Australia, 'The impact of the capital market turbulence on banks' funding costs', Reserve Bank Bulletin, June 2009, p 1.

[2]        Reserve Bank of Australia, 'The impact of the capital market turbulence on banks' funding costs', Reserve Bank Bulletin, June 2009, p 9.

[3]        Mr Glenn Stevens, Governor, Reserve Bank of Australia, Address to Smart Capital 2008: The Euromoney Australian Financial Markets Innovation Congress, Sydney - 27 March 2008, cited by Australian Bankers' Association, Submission 3, p 1.

[4]        Mr David Bell, Chief Executive Officer, Australian Bankers' Association, Committee Hansard, 5 October 2009, p 9.

[5]        Mr Munchenberg, National Australia Bank, Committee Hansard, 5 October 2009, p 17. NAB elaborated on the factors driving their cost of funds in their Supplementary Submission 5.

[6]        Abacus, Submission 6, p 1.

[7]        Michael Peters, Submission 7, p 2.

[8]        ANZ Bank, Submission 4, p 5.

[9]        Mr Salamito, National Australia Bank, Committee Hansard, 5 October 2009, p 19.

[10]      Reserve Bank of Australia, 'The impact of the capital market turbulence on banks' funding costs', Reserve Bank Bulletin, June 2009, p 9.

[11]      Quoted in The Australian, 1 August 2009.

[12]      A similar chart in ANZ Bank, Submission 4, p 3, shows the downward trend in the margin started in the mid-1990s.

[13]      Westpac took over St George Bank and the Commonwealth Bank took over BankWest. The impact of bank mergers is discussed in the Senate Economics References Committee's Report on Bank Mergers (September 2009).

[14]      A similar chart is included in ANZ Bank, Submission 4, p 3.

[15]      National Australia Bank, Submission 5, p 3.

[16]      Mr Steven Munchenberg, National Australia Bank, Proof Committee Hansard, 5 October 2009, p 14.

[17]      Mr Steven Munchenberg, National Australia Bank, Proof Committee Hansard, 5 October 2009, p 14.

[18]      Professor Milind Sathye, Proof Committee Hansard, 5 October 2009, p 4.

[19]      Mr Steven Munchenberg, National Australia Bank, Proof Committee Hansard, 5 October 2009, p 14.

Chapter 3 - The bill

[1]        Government measures to address confidence concerns in the financial sector - The Financial Claims Scheme and the Guarantee Scheme for Large Deposits and Wholesale Funding, 17 September 2009.

[2]        Reserve Bank of Australia, Financial Stability Review, March 2008, p 65.

[3]        Government measures to address confidence concerns in the financial sector - The Financial Claims Scheme and the Guarantee Scheme for Large Deposits and Wholesale Funding, 17 September 2009, p 50.

[4]        Finance Sector Union, Submission 11 to Economics References Committee inquiry on bank funding guarantees, p 2.

[5]        Australian Bankers' Association, Submission 24 to Economics References Committee inquiry on bank funding guarantees, pp 6-7.

[6]        Professor Milind Sathye, Committee Hansard, 5 October 2009, p 2.

[7]        Professor Milind Sathye, Committee Hansard, 5 October 2009, p 2.

[8]        Professor Milind Sathye, Committee Hansard, 5 October 2009, p 3.

[9]        Mr Glenn Stevens, Governor, Reserve Bank of Australia, House Economics Committee Hansard, 20 February 2009, p 8.

[10]      Mr Glenn Stevens, Governor, Reserve Bank of Australia, Address to Smart Capital 2008: The Euromoney Australian Financial Markets Innovation Congress, Sydney - 27 March 2008, cited by Australian Bankers' Association, Submission 3, p 1.

[11]      Mr David Bell, Chief Executive Officer, Australian Bankers' Association, Committee Hansard, 5 October 2009, p 7.

[12]      Abacus, Submission 6, p 2.

[13]      Abacus, Submission 6, p 1.

[14]      The exact wording is 'within 5 business days of a reduction in official interest rates, the bank fails to reduce its standard variable rate by at least the same amount, or at all'[emphasis added]. Professor Sathye would like 'or at all' dropped, as he is concerned that a bank can meet the requirement by cutting its interest rate by 0.001 per cent; Submission 1, p 4.

[15]      Ms Irene Schardijn, Submission 2, p 1.

[16]      Professor Milind Sathye, Committee Hansard, 5 October 2009, p 2.

[17]      Professor Milind Sathye, Submission 1, p 3.

[18]      Professor Milind Sathye, Submission 1, p 3.

[19]      Professor Milind Sathye, Submission 1, p 4.

[20]      Abacus, Submission 6, p 2.

[21]      Abacus, Submission 6, p 2.

[22]      ANZ Bank, Submission 4, p 2.

[23]      Mr Nicholas Hossack, ABA, Committee Hansard, 5 October 2009, p 12.