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Australia came through the global financial crisis (GFC) enduring relatively minor negative effects and a stronger banking sector after the crisis. Banking acquisitions made in 2008/2009 by the major banks led to a perception that those banks enjoyed more market power making it easier for them to increase their profits. The financial press debate market power whenever banks do not pass on the full extent of cuts in official interest rates. This study therefore investigates the impact of changes in the official cash rate by the Reserve Bank of Australia on Australian banks externally via stockholder returns, and internally through bank loan losses and profitability. We also test the relation of bank market power to loan losses and profitability. Results suggest that returns of Australian banks, especially those of the major banks were positively related to cash rate changes pre-GFC but this was not the case following the GFC. The cash rate is shown to be positive and statistically significant in explaining banks' loan loss provisions and profitability pre-GFC. Market power is negatively related to loan losses preGFC, while post-GFC this relation becomes positive. Market power is positively related to bank profitability pre-GFC and weaker in the post-GFC results., https://www.researchgate.net/profile/Kym_Brown/publication/309846586_lmpact_of_interest_rate_changes_and_monetary_policy_on_Australian_banks_before_and_after_the_GFC/links/5824df1a08ae61258e429f12.pdf