Ask me a question about being a Bank Manager

ooneil said:

Rio Tinto and BHP come to mind.

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Yeah I didn't think that question out properly lol,

Next question is why do the banks not pass on the full interest rate cut from the reserve bank? CBA made 6.84 BILLION DOLLARS profit last year but still do not pass on the full rate cut (same as other banks). THAT TO ME IS GREEDY

bruntyblue said:

Yeah I didn't think that question out properly lol,

Next question is why do the banks not pass on the full interest rate cut from the reserve bank? CBA made 6.84 BILLION DOLLARS profit last year but still do not pass on the full rate cut (same as other banks). THAT TO ME IS GREEDY

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Even the reserve bank basically said today their excuses for not passing it on are BS haha

Not to mention the fact that they usually take like 10 days to pass it on so they can rake in more cash, but when their is an increase it's ALWAYS the FULL amount and always the MILLISECOND it happens haha

bruntyblue said:

Yeah I didn't think that question out properly lol,

Next question is why do the banks not pass on the full interest rate cut from the reserve bank? CBA made 6.84 BILLION DOLLARS profit last year but still do not pass on the full rate cut (same as other banks). THAT TO ME IS GREEDY

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So this one a bit hard to answer?

A_Iverson_I said:

Even the reserve bank basically said today their excuses for not passing it on are BS haha

Not to mention the fact that they usually take like 10 days to pass it on so they can rake in more cash, but when their is an increase it's ALWAYS the FULL amount and always the MILLISECOND it happens haha

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Funny how they do that, they say they are not greedy but the are just a pack of arseholes imo, I would love it if I still got a pay packet with cash in it like I used to, banks would not see me

A_Iverson_I said:

Even the reserve bank basically said today their excuses for not passing it on are BS haha

Not to mention the fact that they usually take like 10 days to pass it on so they can rake in more cash, but when their is an increase it's ALWAYS the FULL amount and always the MILLISECOND it happens haha

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Well there is two side to every story. Firstly you probably need to understand where the banks get their money from. We are pretty poor savers in Australia so historically banks have had to borrow more than 50% of their money from overseas to be able to fund loans (commonly called wholesale funding). Lenders overseas are not effected by what happens with interest rates in Australia which is often what makes is difficult for the banks to pass on a full rate cut. This was particularly true in the aftermath of the GFC where wholesale funding rates went through the roof however in the last couple years things have certainly settled down.

Secondly you have to remember that if banks pass on the full cut to mortgage holders then they have to pass the cut onto depositors also. So there are a lot of retired people living off their savings are happy that the banks are not passing on the full rate cut today. Im a financial planner (no longer in bank world thankfully) and we are seeing a lot of people who are taking their funds out of the bank to go back into the share market because they are not happy with deposit rates (why get 4% at CBA when you can get 8% investing in CBA shares). So in reality it is a bit of a juggling act for the bank to try to keep everyone happy and not lose deposits. Also dont forget how popular is it for the politicians to bash banks.

In saying that though when I worked at CBA I was told that the bank made $15 million in extra profit everyday that they delayed passing on a rate cut. In reality this is where they actually are gouging customers. They are making these extra super profits by delaying passing the rate on as apposed to not passing on the full rate.

And that's economics 101 lecture for the day.

Ha ha I like how the original starter of thread has stopped answering questions,

Regarding profiteering, I consider the ATM fee to be excessive, $2, $2.50 etc whatever it is, do you know how this figure was arrived at, likelihood of decreasing or being eliminated etc. is it classed as a penalty for using another bank, or a service charge ( no idea how the banks work their funds owed to other banks through ATM withdrawals etc so you may like to explain that if possible)

commonwealth bank took me to a debt collector for $32.00....my question is, after being whacked with all the bank fees for the 4 years i was with them, why would they give me a bad credit rating over that amount?

package said:

Same as the Billyhoyle thread for teaching. Let me know what your questions are and i'll do my best to answer them for you

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Where are you? lots off questions here

catsfan_26 said:

commonwealth bank took me to a debt collector for $32.00....my question is, after being whacked with all the bank fees for the 4 years i was with them, why would they give me a bad credit rating over that amount?

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Because if you can't/won't pay back $32.....why would they risk giving you $32,000 for a car loan or $320,000 for a homeloan? It's a similar thing to feedback on Ebay or OCT.....if someone has poor feedback you'll be less likely to trade with them.

bruntyblue said:

Ha ha I like how the original starter of thread has stopped answering questions,

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Stopped answering questions because I was out putting up Christmas lights. Can't lurk all night. And today, well, i've been working. I always login here once a day, more on weekends. Keep it friendly eh?

I'll start with the Non-Bank ATM fees. This is a charge, for the providers cost of keeping the machine operational with rental of site/Security to load unload/electronic upkeep. ATMs aren't cheap and are a criminals dream. The $2.50 i'm sure is an arbitrary figure but that is why the $ value is charged. Yes i think the fee is excessive. Use your own banks ATM as much as possible.

Easy to get $32 removed from a credit rating report. Clear it with the bank then they will clear you with the agencies. Was it a forgotten account? Were you late in paying? Were you pro-active in seeking out bank help when you realised you couldn't clear the debt?

The rate cuts. The banks are walking a tightrope at the moment as in 2014 they need to meet BASEL III Capital Tier one holding requirements. CBA launched PERLS VI to get more capital to meet this criteria. This means they need to be holding more cash in the bank that is not earning interest Cost Of Doing Business is higher.
1.8 Million people have a home loan with CBA. It hurts when we don't pass on the rate cut in full. 11 Million people have deposits with CBA. When we don't pass on the full rate cut to them on certain products there is relief for them. The majority of retail/wholesale/industry Super Funds (Your Super Funds) rely on the banks to stay profitable, maintain a strong share price, and pay a reasonable dividend (7%) last year so that Australian retirement funds and Infrastructure investment keeps growing at an acceptable rate to assist with the greying population.
The big four banks in this country along with the likes of BHP Rio Tinto etc, keep this place ticking over with their dividend payments and investment. To do this and maintain their share price they need to deliver profits.
Our banks in Australia are the most heavily regulated in the world. If you are not happy with your current bank I suggest you switch. There are many 2nd tier banks who do fee free accounts but just be wary of the fine print. Many clients who are able to manage their money well never pay any fees, it's actually quite simple. All big 4 banks have ways for you to pay no fees, pay one a visit and ask how. At CBA we offer competitive rates and fantastic service and the security that you are with Australia's largest bank and one of the most Technologically advanced in the world.

How much money is actually kept in a Bank Branch??

I've always wondered whether there was actually a point in robbing a bank or not.

Matty4292 said:

How much money is actually kept in a Bank Branch??

I've always wondered whether there was actually a point in robbing a bank or not.

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Can't answer that question mate sorry. Differs for different branches. I will say this, Banks still do get robbed. They are kept very quiet in the papers though.

package said:

Stopped answering questions because I was out putting up Christmas lights. Can't lurk all night. And today, well, i've been working. I always login here once a day, more on weekends. Keep it friendly eh?

I'll start with the Non-Bank ATM fees. This is a charge, for the providers cost of keeping the machine operational with rental of site/Security to load unload/electronic upkeep. ATMs aren't cheap and are a criminals dream. The $2.50 i'm sure is an arbitrary figure but that is why the $ value is charged. Yes i think the fee is excessive. Use your own banks ATM as much as possible.

Easy to get $32 removed from a credit rating report. Clear it with the bank then they will clear you with the agencies. Was it a forgotten account? Were you late in paying? Were you pro-active in seeking out bank help when you realised you couldn't clear the debt?

The rate cuts. The banks are walking a tightrope at the moment as in 2014 they need to meet BASEL III Capital Tier one holding requirements. CBA launched PERLS VI to get more capital to meet this criteria. This means they need to be holding more cash in the bank that is not earning interest Cost Of Doing Business is higher.
1.8 Million people have a home loan with CBA. It hurts when we don't pass on the rate cut in full. 11 Million people have deposits with CBA. When we don't pass on the full rate cut to them on certain products there is relief for them. The majority of retail/wholesale/industry Super Funds (Your Super Funds) rely on the banks to stay profitable, maintain a strong share price, and pay a reasonable dividend (7%) last year so that Australian retirement funds and Infrastructure investment keeps growing at an acceptable rate to assist with the greying population.
The big four banks in this country along with the likes of BHP Rio Tinto etc, keep this place ticking over with their dividend payments and investment. To do this and maintain their share price they need to deliver profits.
Our banks in Australia are the most heavily regulated in the world. If you are not happy with your current bank I suggest you switch. There are many 2nd tier banks who do fee free accounts but just be wary of the fine print. Many clients who are able to manage their money well never pay any fees, it's actually quite simple. All big 4 banks have ways for you to pay no fees, pay one a visit and ask how. At CBA we offer competitive rates and fantastic service and the security that you are with Australia's largest bank and one of the most Technologically advanced in the world.

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$6.84 Billion profit and you are walking a tightrope, thats crap

Market sentiment can change at the drop of a hat. If a bank is not transparent and not seen to be doing what is neccessary for growth while maintaing investor safety then bye bye share price.

Profit was over 7 Billion. When you have 700 Billion in working debt/equity, you'll see 7 billion is equal to 1%.

You open a restaurant to make money. You invest 1 million dollars in it. Every year you make 10k. Would you be happy with that?

informative stuff mate.

Did you used to work at Dick Smith or something? Was sure I heard you say in an old you tube vid something to that effect

Wow, oops , should I call it Johnson Smith? Old Fella Smith?

Allstar cards inc said:

Because if you can't/won't pay back $32.....why would they risk giving you $32,000 for a car loan or $320,000 for a homeloan? It's a similar thing to feedback on Ebay or OCT.....if someone has poor feedback you'll be less likely to trade with them.

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lol i didnt explain my self propperly... i closed an account and was told i would have no fees added....3 weeks later they sent me a letter saying it is costing $32.00 to close my account...i won overall because the person lied and didnt tell me it would be the case...

catsfan_26 said:

lol i didnt explain my self propperly... i closed an account and was told i would have no fees added....3 weeks later they sent me a letter saying it is costing $32.00 to close my account...i won overall because the person lied and didnt tell me it would be the case...

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As well you should. PERSONALLY, I would probably have written off the $32 as a gesture of good will if you were closing an account and it turned out that fee was there. As with all Customer Service, there is a right way and a wrong way.

GarnettFan4Life said:

informative stuff mate.

Did you used to work at d*** Smith or something? Was sure I heard you say in an old you tube vid something to that effect

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Yeah mate I did. Company was going nowhere. I wanted to get promoted but i was Store Manager of the busiest one there was and the company was heading down the tubes except for about 15/20 actual profitable stores so I had to get out. Fortunately, the bank chose me to go on an external recruit program so got lucky there.

I will add one thing to all this, when it comes to the big picture staff (Market Forces etc) most of this knowledge I've gained through my Bachelor of Commerce degree. It's funny that I actually came away from Univesity (Took me 10 years but that's another story) with some actual knowledge about the field I'm finally working in.

Were you the person at the Commonwealth Bank, or do you know any of them, who would abuse me when I went into the branch or answered the phone?

This would be a funny story, if it happened to someone else.

I am a long-time customer, with savings accounts and investment accounts, and I decide to bank inside the branch. I thought that was normal. Why would I stand in the cold and rain and wait for a crime at the ATM? I go inside to do my banking and the teller yells at me to use the ATM.

I didn't close my accounts then, but did after the bank phoned me up. They had sent some advertising brochure about nothing, and had phoned four or five times in a day or two to talk about it. After many times answering the phone I asked them not to call because they had called so many times. The bank person then launches into a tirade that they can do whatever they want. I ask to speak to the person in charge, they refuse and keep abusing me.

I don't hold a grudge like Khomeini, but it will take a lot of bad things from the rest of the banks before I ever go to the Commonwealth Bank again.