Banking is an essential part of the Australian economy – almost an essential service. So why should it be “extremely profitable” to use the former RBA’s Governor’s words? Why do bankers have to be exceedingly privileged? What does that mean to those of us who need to use the banking system? And what can we do about it? The Australia Institute has just published a paper, A licence to print money: bank profits in Australia, that tries to answer some of those questions. It confirms the Governor’s words that the banks are indeed extremely profitable, especially the big four; the ANZ, Commonwealth, National and Westpac. Despite the setback due to the global financial crisis the profits of the big four have been gradually increasing from 1 per cent of GDP 20 years ago to around 2 per cent today – and they would have been higher still if not for the global financial crisis.
Related documents
Between the Lines Newsletter
The biggest stories and the best analysis from the team at the Australia Institute, delivered to your inbox every fortnight.
You might also like
Corporate Profits Must Take Hit to Save Workers
Historically high corporate profits must take a hit if workers are to claw back real wage losses from the inflationary crisis, according to new research from the Australia Institute’s Centre for Future Work.
Letters to EPA, Department: Evidence demands state and federal action against fish farm licence renewals in Macquarie Harbour
The science is clear: Removing fish farming from Macquarie Harbour is an urgent priority to be actioned before this summer.
Who Pays the Piper…Universities Dance to the AUKUS Tune
When AUKUS was announced, the ANU was quick off the mark to cash in.