The National Australia Bank is planning to follow the lead of Macquarie Bank and establish a non-operating holding company structure.

If the green light is indeed given, shareholders are likely to be voting on quite a radical Macquarie Bank-style restructuring within 12 months, although the reaction of APRA and the Rudd Government will be fascinating as a wider battle between the banks and their regulatory masters looms.

Adam Schwab was absolutely right last Thursday in Crikey when he pointed out that refinancing fees and delays give the banking cartel far greater pricing power. Customers are so entangled with their bank that it is just not worth the effort to refinance.

It is the fees, rather than interest rate margins, where the Big Five banks are generating much of their super profits of $25 billion a year.

Swan has been quick to pounce but it will actually require some specific regulatory action rather than Treasury reports and his preferred “name and shame” tactic.

How about a reform which dictated that establishment fees and early loan repayment fees were no longer legal when dealing with someone’s principal place of residence?

What sort of regulatory system tolerates penalties for citizens reducing their reliance on what can be a dangerous product?

Excessive debt is just another sinful product in the market place. The marketing should be regulated lest it gets out of control, as has occurred with the US sub-prime meltdown.

Imagine if pokies players, big drinkers or smokers had to pay a penalty fee for giving up.

Banking is an essential service and Wayne Swan should be taking steps to end the sad situation which sees Australians suffer the world’s most expensive banking system.

By all means let the market operate when it comes to the interest rates themselves, but we need some tough regulatory action to ensure we have loan portability and less gouging on the fee front.

The latest Mayne Report video makes the claim that a sheila has overtaken all comers to be Australia’s richest person.