1308msletters2

Banks fail on their social contract

Bill Widerberg says “increased (bank) profit is to be lauded, not criticised as obscene” (Letters, August 12). If the profits are derived ethically, I agree. However, if a bank increases borrowing rates promptly to the full RBA increase and increases deposit rates much more slowly, I would suggest they are exploiting and gouging their customers. If that pattern of behaviour and others shown up by a royal commission are still typical of bank behaviour, then my view is that the profits are more obscene than lauded.
Bill Irvine, Goulburn

Bill Widerberg says “a business exists for one reason only, to make a profit”. If most people share this belief then it’s no wonder so many people are struggling. Whatever happened to a caring society, or doing a job /running a business to enhance life? We all know that a business needs some profit but it is not the motivation to exist. Hopefully, people will realise that money doesn’t bring happiness or contentment in life.
Jacqui Keats, Black Head

It is worse than arrogant for the CBA to be making record profits at the same time as leaving their customers who are scammed to bear their own losses. One of the conditions of being granted a banking licence is the guarantee to protect depositors’ assets. Whatever happened to that quaint idea? It appears now if one of their customers is scammed he or she is left to swing in the breeze. Surely, the government that grants these licences has a duty of care to the banking customers to stand by them when the banks fail to do so?
Rosemary McDonald, Beecroft

According to your correspondent, “profit comes from thought”. But why should the CBA benefit from Philip Lowe’s?

John Christie, Oatley

There is a social contract at play here. We allow businesses to operate only because on balance they give us a social good. In Australia, we further enable businesses by providing rule of law and a regulated marketplace. When banks make huge profits and the bank’s customers are treated so poorly, then it is appropriate to ask if they are upholding their side of the bargain.

Tony De Lyall, Bulli

Do these banks use any of the profit to improve customer service, reduce lending rates, increase savings rates, create employment, reward employees or invest in a better society? Hardly. As long as they keep using their record profits to close branches, sack people, hike interest rates on loans, and pay a pittance on deposits while generously rewarding executives and shareholders they deserve all the criticism we can muster.

David Harrison, Winmalee