A few weeks ago I spoke with Steve Austin from 612 ABC Brisbane about the Term Funding Facility provided to the banks during the ”Covid crisis.”
The banks were lent $188 billion at the very cheap rate of 0.1% to 0.15% until 2024.
Whilst the RBA was happy to renege on its promise to the Australian people that they wouldn’t lift rates until 2024 by raising the cash rate over 4% in just over a year, the big banks are still getting incredibly cheap funding courtesy of the taxpayer.
Whether we like it or not the banks will always be protected by the government. That is why they have a social licence to keep branches open and provide face to face services especially in regards to cash transactions.
