Interest rate limits are welcome, but more reforms are needed for Australian banks, according to the Finance Sector Union. The organization's comments follow opposition treasury spokesman Joe Hockey's demand that Treasurer Wayne Swan use all the levers of his position to prevent lenders from raising interest rates over and above Reserve Bank adjustments.

The FSU welcomed the Coalition's foray into the better banking debate and said it has long been urging greater parliamentary regulation and monitoring of bank practices to make good their social obligations.

According to the organization, the Coalition's call for a tougher response from Government towards the banks over interest rates was a positive step that would be welcomed by the Australian public. Independent research commissioned by the FSU in April 2010 showed that 79% of Australians want the parliament to prevent banks charging higher interest rates than those set by the RBA.

Leon Carter, National Secretary of the Finance Sector Union, said Australian banks had an obligation to responsible lending practices and to ensure that interest rates and charges are kept at a sustainable level.

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"It seems that the days are gone when we knew precisely what an RBA interest rate hike of .25% would mean to our monthly mortgage payments. Now we have to sit back and wait to see how much more the banks decide to gouge from our pockets. The public has had enough and they want parliament to regulate to protect them from this behaviour.

"We've got high levels of debt in this country, stoked by our banks who are reaping in record profits. Yet the banks continue to cry poor to justify further profit-seeking activities. Unless the parliament is prepared to review all of the behaviours and practices by banks, any reform to the charging of interest rates will simply be offset by alternative profit gouging methods."

"Interest rate charges are the tip of the iceberg when it comes to the publics disquiet with our banks" Mr Carter said. "On the back of our research, we have established a reform agenda called Better Banking. It reflects the views of the Australian public and the thousands of Australians who work in the sector, our members.

"We would urge all political parties to consider the role and responsibility that Government's have to ensure that the essential service of banking is fairer for all Australians.

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