The Financial System | fees charged by banks (ADIs) to households and businesses justified?


WRITTEN REFLECTION Topic – Do Australian Banks make excessive profits?
Australian banks are some of the most successful and profitable banks in the world. In the
last financial year, the “Big 4” banks produced combined profits in excess of $30 billion
dollars. What are your thoughts on the record profits enjoyed by Australian Banks? Is this
level of profits excessive? Or are the banks earning fair returns for the important role that
they play in the financial system?
Your written reflection will need to include a brief discussion of key issues and facts in
relation to this topic; an example from your own personal experience that helps to form your
opinion; and your own personal thoughts on whether you believe that Australian banks yield
excessive profit.
Some useful references are:
 25556 The Financial System lecture note
 Ben Hunt and Chris Terry, 2015, Financial Institutions + Markets, 7th edn,
Cengage Learning, South Melbourne.
 Farr, M. “Australian banks top global list as Labor persists in demands for a
royal commission” Available at:
banks-top- global-list- as-labor- persists-in- demands-for- a-royal- commission/news-
 Ellis, L. “Reserve Bank of Australia Speech on Financial Stability and the Banking
Sector” Available at: 2016-07-
 Articles written in newspapers business journal or Internet sources.

Submission: 6pm, Friday 7 rd October 2016

Requirements for the written reflections

A written reflection is where you write your own thoughts or opinions on a topic that you
are given to research. It can reflect how your views developed, changed or are supported by
the research that you have undertaken. It is not simply a description of topic being covered.
1. Word limit – The maximum number of words for each written reflection is 600
words. This includes words used in footnotes/endnotes, on graphs or in tables but
not in the reference list. Material cannot be included in appendices.
2. Layout – To be printed single-sided on A4 paper with 12-pont font and 1.5 line
spacing. The Written Reflection cover sheet must be attached to the front of each
written reflection. This cover sheet can be downloaded from UTS Online. You must
sign the cover sheet otherwise it will not be marked.
3. The written reflection may be submitted in your tutorial on Thursday 6 th or Friday 7 th
October 2016 or in the box marked “Finance 6” in the student lounge on level 5 in
Building 8 (in front of the blue pods) by 6 pm on Friday 7 th October 2016.
4. References – At least two (2) references other than the lecture notes must be used
when writing up each written reflection. Your reference list must be attached to the
back of the written reflection with references listed in alphabetical order of the first
author's surnames. For details on referencing you can use the Faculty of Business
(2014) Guide to Writing Assignments which can be downloaded from the following
link: guide-2014.pdf.
5. Your assignment must also be submitted through UTSOnline via the Assignment
facility by 6pm on Friday 7 rd October 2016. This submission goes through to
Turnitin, a plagiarism detection software package. Please note that you are
required to submit your assignment once only to Turnitin.


Initially, I thought that fee income comprised a substantial fraction of a bank’s earnings due to a myriad of fees. This presumption was solely based on several instances of paying fees of which I am unfamiliar with prior to the inception stage of banking transactions.