Cronulla_Mania
Bench
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I guess this will cause a bit of controversy, so im going to do the right thing by LWOS guidelines section 6.2 and stick it in the contro corner. I'll entitle it a few thoughts on banks. It was in response to some debate recently over bank fees. I couldn't resist (im currently doing a banking/finance major), so i thought id fire back some random thoughts. Feel free, and im sure people will, to criticise or critique this opinion
<span>Hmmm....well the way i look at it, WBC pulled in a 2billion dollar profit and NAB about 3.4billion
It does sound huge, and it is relative to most Australian institutions. But i think things have to be kept in perspective when discussing this. 99% of people in Australia would do business with a bank. Now, tell me of another institution in Australia that would have such a large potential market?? (excluding telstra who is still majority gov't owned). And banks deal in big $$$. A bank such as WBC deal in the markets, they lend money to wholesale customers, are involved in investment and insurance managment. All hugeee industries. And back to my point of capturing the market, even if WBC only captured 20% of the market (being conservative), that would still be 4 million Australians. And that is not to mention all of the huge businesses that deal with them. The $$$ for banks stack up really quickly is the point that im getting at.
I would have to agree with the issues about fees. But the banks are like any public company, they are return driven and focused on satisfying shareholders. If people have a problem with this, i think its more an issuing of revisiting social values in general, not just the operations of an individual bank. Ask Nike about the avg $60-70 mark-up they charge on shoes. Costs about $4 to make in Indonesia, shipped off to the US, a few minimal costs and hey presto, they charge hundreds. Do a bit of research on any company and u will very quickly find that only a rare few operate within ethical standards.
Im currently doing a major in finance and banking at uni, so i guess this topic has a load of relevance at the moment. Westpac had non-interest expenses of 7.6 billion for the 2001/02 year just finished. Adding onto that 4.1 billion in interest expense and you already have close on 13 billion in expenses. Its quite a bit. And to be fair to them, you also have to consider how much money they donate to charities and things such as the Westpac lifesaver helicopter (although i agree, it could be more)
Basicalllyyyyy...all the whinging on banks is pretty justified. But its a money driven society. Money is the number one driver and indicater of performance. If Dave Morgan could either make 1 million off a $50k investment or spend that same 50k on subsidising the bank fees of 50 grannies, what do u think he would do??
Its a harsh example, but i think you have to look at general societal attitudes and values before the banks start copping all the blame.
Moffo</span>
<span>Hmmm....well the way i look at it, WBC pulled in a 2billion dollar profit and NAB about 3.4billion
It does sound huge, and it is relative to most Australian institutions. But i think things have to be kept in perspective when discussing this. 99% of people in Australia would do business with a bank. Now, tell me of another institution in Australia that would have such a large potential market?? (excluding telstra who is still majority gov't owned). And banks deal in big $$$. A bank such as WBC deal in the markets, they lend money to wholesale customers, are involved in investment and insurance managment. All hugeee industries. And back to my point of capturing the market, even if WBC only captured 20% of the market (being conservative), that would still be 4 million Australians. And that is not to mention all of the huge businesses that deal with them. The $$$ for banks stack up really quickly is the point that im getting at.
I would have to agree with the issues about fees. But the banks are like any public company, they are return driven and focused on satisfying shareholders. If people have a problem with this, i think its more an issuing of revisiting social values in general, not just the operations of an individual bank. Ask Nike about the avg $60-70 mark-up they charge on shoes. Costs about $4 to make in Indonesia, shipped off to the US, a few minimal costs and hey presto, they charge hundreds. Do a bit of research on any company and u will very quickly find that only a rare few operate within ethical standards.
Im currently doing a major in finance and banking at uni, so i guess this topic has a load of relevance at the moment. Westpac had non-interest expenses of 7.6 billion for the 2001/02 year just finished. Adding onto that 4.1 billion in interest expense and you already have close on 13 billion in expenses. Its quite a bit. And to be fair to them, you also have to consider how much money they donate to charities and things such as the Westpac lifesaver helicopter (although i agree, it could be more)
Basicalllyyyyy...all the whinging on banks is pretty justified. But its a money driven society. Money is the number one driver and indicater of performance. If Dave Morgan could either make 1 million off a $50k investment or spend that same 50k on subsidising the bank fees of 50 grannies, what do u think he would do??
Its a harsh example, but i think you have to look at general societal attitudes and values before the banks start copping all the blame.
Moffo</span>