Aus­tralia to help smaller len­ders

The Pak Banker - - Front Page -

SYD­NEY: Aus­tralia's top banks will face gov­ern­ment­backed com­pe­ti­tion and much closer scru­tiny as part of mea­sures to be un­veiled on Wed­nes­day by the govern­ment to boost com­pe­ti­tion in the sec­tor now dom­i­nated by four play­ers, the Syd­ney Morn­ing Her­ald re­ported on Mon­day.

Trea­surer Wayne Swan will present a five-point plan to the cabi­net later on Mon­day, the paper said, in a move aimed at calm­ing a hot po­lit­i­cal is­sue af­ter ma­jor banks in­creased mort­gage rates faster than the cen­tral bank's bench­mark rate.

But the re­port said the plan will be short on de­tail and pro­poses con­sul­ta­tions to come up with mea­sures that will work.

These mea­sures, an­a­lysts say, will at best add some teeth to small len­ders but not harm the large ones.

Na­tional Aus­tralia Bank, Com­mon­wealth bank of Aus­tralia, West­pac Bank­ing Corp and Aus­tralia and New Zealand Bank­ing Group con­trol 87 per­cent of the mort­gage mar­ket and dom­i­nate all other parts of the sec­tor now. -PB News

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