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A survey has found banks collected nearly $11 billion in fees in the last financial year.

The Reserve Bank found that in the 2007 financial year, the income the 19 participating banks earned from fees grew by 8 per cent to $10.5 billion.

Households accounted for $4.4 billion, with fees on deposit accounts making up 40 per cent of those earnings.

But the RBA says it does not appear that banks are charging higher fees, because the income they receive is growing more slowly than their balance sheets.

It attributes the increase to greater demand for banking services.

The Australian Bankers Association's chief executive, David Bell, says the ratio of fee revenue to total bank profits has been falling steadily over the past five years.

"What the Reserve Bank report this year has found, is that the growth in fee income has been the result of greater use of banking services rather than high unit charges," he said.

"What has happened is that we've had a very booming economy and that has resulted in greater use of the banking system."

source: www.abc.net.au