Bank chiefs to face a competition inquisition

THE four major-bank chief executives will be asked this week to preserve competition by swearing off any plan to acquire Suncorp’s pressured regional banking operation.

Ahead of an inquisition by the house economics committee, senior Labor Party MP Andrew Leigh said few experts believed it would be in the interests of customers for the big four to enhance their market power.

“So I’ll be asking each of the major banks to rule out buying Suncorp’s regional banking business if it comes up for sale,” Dr Leigh said.

“I’ll be asking them to commit to not acquiring fintech start-ups merely to protect themselves against healthy competition.”

Speculation has persisted that Suncorp could offload its poorly performing bank, despite the company’s insistence that it remains a core business.

Housing is likely to be high on the agenda at the hearings, and Liberal Party MP and committee chairman Tim Wilson will further prosecute his ambition to open up the property market for those who are presently excluded. Last month, housing prices surged 2.8 per cent – the fastest rate of growth since October 1988.

“Young Australians are already forced to prioritise superannuation over home ownership, making it harder to save a deposit, and now they’re paying the heavy price of low interest rates causing asset price inflation,” Mr Wilson said.

“It will be interesting to know how many first homeowners rely on their parents to get into the market, as well as the impact on first home buyers if prudential requirements are tightened.”

As well as the hot housing market, bank bosses are also expected to face a grilling over the economic recovery from Covid; lending standards; cyber security; the end of loan relief schemes; and plans for further branch closures.