Credit markets are already closing as the euro zone debt crisis continues, ANZ chief executive Mike Smith says.
"This is what happens in this sort of situation," Mr Smith told a Trans Tasman Business Circle lunch on Friday.
Commonwealth Bank of Australia (CBA) shares have dropped despite posting a profit of $1.7 billion for the three months to March.
CBA's unaudited net profit for the third quarter of its fiscal year was slightly lower than had been forecast by analysts.
Slowing economic growth, inflation, and interest rate hikes by commercial banks gave the Reserve Bank of Australia (RBA) the impetus to cut the cash rate in May.
Westpac has cut its interest rates on its short term fixed rate home loans by up to 20 basis points.
The bank said the rate on its three-year fixed rate loan would drop from 6.39 per cent to 6.19 per cent, effective immediately.
National Australia Bank will raise up to $500 million by issuing subordinated notes to investors.
The issue of the unsecured, subordinated debt obligations has the ability to raise more or less than $500 million, NAB announced today.
Australia's banking watchdog says outsourcing does not always lead to cost savings, rather it can lead to higher costs and a loss of expertise.
Australian Prudential Regulation Authority chairman John Laker says APRA is not opposed to outsourcing.
ANZ has trimmed its standard variable home loan and business lending rates by 37 basis points.
The decision came after the bank's board held its monthly meeting to discuss interest rates today.
The bank's standard variable home loan rate was cut to 7.05 per cent.
The High Court will hear a class action by customers of the ANZ Bank alleging it charged excessive fees for overdrafts, overdrawn accounts, dishonour fees and over-the-limit credit card accounts.
National Australia Bank's net profit for the six months to March 31 fell 15.5 per cent to $2.05 billion due to its underperforming operations in the United Kingdom.
The Commonwealth Bank of Australia is cutting interest rates on its one- and three-year fixed home loans by up to 0.34 percentage point.
Its one-year fixed rate will be cut from 6.14 per cent to 5.99 per cent, while the three-year rate will fall from 6.33 per cent to 5.99 per cent.
Commonwealth Bank of Australia is the latest major lender to announce job cuts, with about 100 positions to be axed.
CBA will cut about 100 jobs as it makes changes to its mortgages business to deal with weak demand.
Westpac's business customers have received greater interest rate relief than mortgage holders, with the bank saying the sector needs a boost in the current economy.
Westpac Banking Corporation is unlikely to pass on the central bank's 0.5 per cent rate cut despite making a near $3 billion profit in the first half of its fiscal year.
The Commonwealth Bank of Australia has cut its standard variable home loan rate by 40 basis points to 7.01 per cent, while Westpac said it would wait until tomorrow to announce its intentions.
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