One is that banks are reducing deposit rates because they do not need the money.

The central bank reduced its intervention rate in the domestic money market to 6.5 percent.

That means the people and banks trying to sell must reduce the price even further, putting more mortgages at risk.

Some banks and building societies have reduced their interest rates as a result.

In addition, the bank reduced by $900 million its holdings of loans on which no interest was being paid.

In recent times major Australian banks have reduced their charges.

But analysts say the bank must also reduce costs and find a way out of its problems in retail banking.

The bank is also reducing its aircraft business to focus on "the main international airlines".

But today the bank reduced the annualized rate, to 60 percent.

Since September 1986, the bank has reduced its work force by 2,900 people.