Australia and New Zealand Banking Group (ASX:ANZ) has defied political and consumer outrage and hiked its standard variable rate by 39 basis points to 7.8 per cent, softening the blow by dropping some mortgage exit fees.
The move comes eight days following the Reserve Bank adding 25 basis points to the official cash rate, after which Commonwealth Bank of Australia (ASX:CBA) increased its standard variable rate by almost double that of the RBA's, rising by 45 basis points to 7.81 per cent.
Amid rising backlash against Australia's major banks, The Australian Securities and Investments Commission has released guidelines how it plans to tackle lenders who charge more than cost recovery on early exit fees, claiming its fee reform package will prevent banks from double dipping with charges on customers.
National Australia Bank Ltd (ASX:NAB), Commonwealth Bank and Westpac Banking Corporation (ASX:WBC) have not as yet indicated whether they will be following ANZ's lead and scrapping their own exit fees.
ANZ says all of its new changes will be effective from Monday 15 November, except credit cards which will be effective the following day.
ANZ boosted its profit to $4.5 billion in year to 30 September 2010, lifting from $2.9 billion the year before.
ANZ Price at posting:
$23.70 Sentiment: None Disclosure: Held
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