In an effort to survive the global economic crisis, Australian banks are hoping to haul in more than $5 billion in fees.

Research firm Fujitsu Consulting recently released its annual bank fee benchmark report which shows that Australian household pay 22% more in bank fees than those in the UK and 11% more than US households. On average, Australian households pay close to $1000 in fees each year while British households only fork over $749 and those in the US only $850.

In 2008, the report notes that Australian banks collected just under $5 billion. This year, the estimate is around $5.25 billion in fees. Of that 2009 estimate, $2 billion will come from transaction accounts and $1.5 billion relates to credit card fees.

The low level of competition in the country’s banking industry contributes to the near $200 discrepancy. The wide range of fees and charges levied in Australia ranks the country’s banks among the most expensive in the western world.

In an interview, Martin North of Fujistu said that Australian banks are less efficient than their overseas counterpart. These fees often make up for the cost gap. According to North, Australian banks charge 300 different fees while in the UK they have around 200 fees.

On the other hand, the Australian Bankers’ Association chief executive David Bell, says domestic bank fees are fairly reasonable. He adds that banks should be recognised for offering low-cost or fee-free accounts.

The research also reports that many consumers are apathetic to bank fees.

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