Regular listeners will be aware of my ongoing angst over banks and whether or not they are legit players in our marketplace. 

The Reserve Bank this week, in one final stab this year, will most likely cut the cash rate, again, which will leave it at 2.25%. 

The Co-operative Bank last week claimed they are the only ones who have fully passed on the cash rate cuts so far. 

In fact, as of the current cash rate at 2.5%, they have cut their floating rate to 3.1% against the cash rate fall of 3%. 

Now on the surface, if their claim is correct, that would back up the broad-based argument that retail banks are creaming it, and things need to be done about it. 

Certainly, the banks margins remain high and as of a couple of weeks ago those who reported, reported their margins expanding. 

Now the counter to all that is the Co-operative Bank themselves. If what they say is correct, good on them. But what does that prove? 

It proves there is competition. It proves that the market is dynamic and it proves that if you see their claim and think to yourself "hold on, how come I don’t have a deal that good?" you can in fact, and have always been able to, change banks. 

So in offering the insight inferring a lack of competitive behaviour, do they not to a degree shoot themselves in the foot? 

Further, I think it's fair to suggest that in reference to the floating rate not many people, generally, are on the floating rate. And even if you have a few at the moment waiting to lock up when a final cut comes, the overarching theme of New Zealand lending is one of fixed rates. 

So perhaps a better example would be what the competition is like around the part of the market that is most used and therefore most competitive. 

So you can see my dilemma, my ongoing issue. I can find you examples of banks behaving if not badly, at least suspiciously, thus giving weight to those who argue oligopolies. 

But I can find examples of good, clean, open competition where deals are to be done. 

So once again there's the simple question with seemingly no solid answer. 

Who is right?