Move to force cheaper home loans

Townsville Bulletin - - NEWS -

AUS­TRALIANS are be­ing promised cheaper home loans and big­ger re­turns on sav­ings un­der a Fed­eral Gov­ern­ment plan to al­low more lenders to call them­selves a bank.

Trea­surer Scott Mor­ri­son will to­day re­veal he wants to di­lute the power of the big four banks by re­mov­ing laws that re­quire lenders to have more than $ 50 mil­lion cap­i­tal. He said lenders faced a sig­nif­i­cant ob­sta­cle by not le­gally be­ing able to call them­selves banks.

His plan mir­rors the UK where, af­ter it was made eas­ier for lenders to com­pete, 56 new banks en­tered the mar­ket.

Many were on­line lenders that could of­fer cut- price rates due to lower over­heads.

“The Turn­bull Gov­ern­ment wants to bring greater com­pe­ti­tion to the bank­ing sec­tor,’’ Mr Mor­ri­son said. “Al­low­ing more lenders to be called banks will mean bet­ter ac­cess to cheaper loans and more gen­er­ous de­posit rates.’’

Mr Mor­ri­son will to­day re­lease draft leg­is­la­tion for pub­lic con­sul­ta­tion.

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