You are using an older browser version. Please use a supported version for the best MSN experience.

The bank profits in delaying rate cut

AAP logoAAP 5/10/2016

The big four banks can collectively make about $8.6 million a day when they don't fully pass onto borrowers a hypothetical 0.25 per cut in the Reserve Bank's cash rate.

That's the finding of an analysis by Abbas Valadkhani, a professor of economics at Swinburne University of Technology, that also shows most building societies and some credit unions can offer more competitive home loans than banks.

"If ANZ, CBA, NAB and Westpac manage to postpone lowering their mortgage interest rates say by 10 days, they can potentially each make an extra $16-26 million dollars in profits," he wrote on The Conversation website.

image beaconimage beaconimage beacon