Australia to help smaller lenders
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