Banks must pass on rate cut: ACTU

The big four banks have no excuse for not passing any interest rate cut in full, the Australian Council for Trade Unions (ACTU) says.

Financial markets are widely expecting the Reserve Bank of Australia (RBA) to cut the cash rate to four per cent from 4.25 per cent on Tuesday following on from the two reductions in November and December.

ACTU president Ged Kearney said the combined salaries of the four major bank chief executives totalled $28.6 million, making it impossible to feel any sympathy for their complaints about their financial circumstances.

"Last year the big four banks made profits of $25.2 billion - easily more than the rest of the banking sector combined," Ms Kearney said.

"They now have a greater share of the home lending market than before the global financial crisis.

"They have squeezed competition out of the market and are now using their market power to squeeze working Australians.

"If the banks cannot behave in a socially responsible manner, it may be time to consider stronger government regulation to drive greater competition, improved consumer protection and more sustainable corporate behaviour in the banking sector."

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