Central Banking

Bank charges given support by Australian study

AUSTRALIA - A study by Macquarie University claims that banks are justified in charging high service fees.

The report, prepared by Professor Johannes Jutter, was released in early August 2001. The study found that international competition forced Australian banks to keep interest rates low and, as a consequence, to increase service charges to cover costs. The findings of the study corroborate claims made by the Reserve Bank of Australia in 2000.