Demand That the Banks Reverse Their Interest Rate Hikes
01. January 0001We Demand That the Banks Reverse Their Interest Rate Hikes
LÍV, VR and the Fagfélögin condemn the interest rate hikes announced by the commercial banks before the weekend. The commercial banks reported close to ISK 100 billion in profit after taxes last year. That amounts to more than ISK 320 thousand for every adult in the country. There is room for manoeuvre there, and there lies the banks’ social responsibility. The banks should shoulder part of the burden caused by the economic situation.
The return on equity of all the banks has increased steadily, and interest rate spreads are also widening. The banks are profiting from the situation while, at the same time, households across the country are being squeezed even further. The situation has now reached the point where four out of ten parents in the labour market struggle to make ends meet and cannot cover unexpected expenses of ISK 100 thousand. In other words, fully employed people are in the position where, if the washing machine breaks down, they cannot make ends meet at the end of the month, and perhaps not even the following month either.
The banks are major players within the business community, which promised that we were all in the same boat when it came to the fight against inflation. Working people will not accept the banks or the business community abandoning that commitment. We demand that the interest rate hikes of recent days be reversed, with the aim of ensuring that collective agreements hold. Bank executives need to show the public that they intend to shoulder responsibility for the situation alongside working people.