Federal Treasurer Wayne Swan has again called on the country's giant banks to pass on to their customers the benefits of the rate cut that the Reserve Bank has announced yesterday, insisting that these lenders are profitable enough.

According to the Australian Associated Press (AAP), the so-called Big Four in Australia, namely Australia & New Zealand Banking Group (ANZ), Commonwealth Bank of Australia (CBA), National Australia Bank (NAB) and Westpac, reportedly rake in more than $6 million in profits that each day the banking public was prevented from reaching into the cuts.

Such reports only proved, Mr Swan said, that "the banks are very profitable ... and their net interest margins are around the levels that they were prior to the global financial crisis, their return on equity is high."

"My view, very strongly, is that they should pass it on in full," the Treasurer said on Wednesday in an interview with Channel 10.

"I think that their customers will not treat them kindly if they do not pass this through in full," Mr Swan added.

However, Glenn Stevens, Reserve Bank of Australia (RBA) governor, has indicated yesterday in a statement that part of the reasons the RBA board has decided to push down the country's borrowing cost to 3.50 percent was the perceive low points seen in the financial markets in May.

The central bank also shaved off another 25 basis points from the cash rate this June, following the reduction of 50 basis points last month, to provide for the domestic economy "a more accommodative stance of monetary policy," Mr Steven said.

The new policy, he added, should spur moderate growth in the local settings and keep inflation at manageable levels amidst the unsettling turmoil gripping much of the European economies.

The RBA noted too of the projected slow down in China, Australia's biggest trading partner, further making the rate decision yesterday a must for the local economy.

Yet prior to the RBA intervention, Ms Swan has insisted at the start of the week that Australia currently enjoys a robust economy and the country should be confident of its standing despite the unsettling indicators seen from abroad.

The same solid condition, he added, should afford enough confidence for bankers to pass on to their customers the rate cut that the RBA has rolled out.

His stance was echoed Wednesday morning by Finance Minister Penny Wong, stressing in an interview with ABC that "the issue here is banks need to do the right thing by their customers."

Ms Wong clarified though that strong calls coming from government official for banks to be more reasonable on their rate policies do not necessarily mean that federal authorities would prefer imposing stricter regulation on the industry.

"What we can do is increase competition and we would encourage people to shop around," Ms Wong said.

In a statement, Opposition Treasury spokesman Joe Hockey said it has become the norm that banks would ignore the RBA rate settings and the government would leave the public wondering on the situation.

Mr Hockey stressed that he support the calls for banks to pass on the rate and "if they don't, then they should explain that to their customers, and the man who has the information available at his fingertips is the Treasurer."

"(Mr Swan) should just be honest and say if the banks have a problem they should explain their funding need," the shadow treasurer told ABC today.

Also, Australian Bankers Association (ABA) chief executive Steve Munchenberg said in an interview with ABC that bankers were indeed wary of the wrath coming from banking customers if the latest rate reduction will not be passed in full.

"But our primary concern at this moment is to keep our banking safe and stable, given the very serious situation in Europe," Mr Munchenberg said.

Meanwhile, the Australian Competition and Consumer Commission (ACCC) has indicated today that it is ready to enforce a new law against price signalling, sternly warning that banks observed as exchanging 'coded smoke signals' will have to deal with the consumer watchdog.