For decades the actions of the Reserve Bank were followed within days by the major lending institutions.

Of course, interest rate rises appeared to flow much quicker to the mortgage belt than movements in the opposite direction.

The global financial crisis changed all of that, with banks - especially the big four in Australia - not following the Reserve Bank and passing on the full drops in the official cash rate.

The dilemma for Australia is that we enjoy a relatively stable economy because of the strength of our banking sector, which is at odds with the US and Europe.

So while politicians turn interest rate announcements into a boxing match, it is essential decisions about bank viability are made objectively.

Claims from Financial Services Minister Bill Shorten that banks were putting their profits ahead of jobs is symptomatic of the problem.

Banks attract deposits and then lend money to make a profit for their shareholders.

It is up to governments to create the jobs by providing the right environment for companies to borrow, expand and employ.

Former NAB chief executive Don Argus was quoted in The Australian this week defending the banking industry saying, if the banks were ``not creating credit opportunities, then you won't get growth in the economy''.

The ANZ has already said that it will review interest rates at different times to the Reserve Bank to eliminate the political interference.

Part of the hidden problem is that banks are clearly facing cost increases as the European sovereign debt crisis spreads to every country.

The art to banking is spreading the risk, but equally no country or bank is immune.

There is little doubt that huge bank profits and exorbitant salary packages for chief executives are difficult to comprehend.

However, the last people who should get involved are the politicians.