I haven't seen anthing about credit card interest rates as part of this latest bank inqiry or why the banks are not passing on any of the interest rate cuts on cc rates. In fact citibank has recently raised their readycredit account rate from 19.99 to 20.49% equivalent to 500 basis points!
So what happens to all those SMSF's who have 30% plus of their money in the big 4 Australian banks? I have even met some who have all 4 banks because they believe this is how to diversify and spread the risk. Investors forget banks are highly leveraged investments and any fall in economic activity could see a collapse in their share prices and dividends. This is what happened to ANZ and Westpac in the early 1990's, and that scenario could happen again.
Peter - it will be OK... those investors probably have some bank hybrids as well for further diversification!
re Yvon: sounds more like 50 basis points to me...