8 May 2017
Sydney, 8 May 2017: The Australian Bankers’ Association has today welcomed the Federal Government’s announcement of an inquiry into the competitiveness of the financial system.
ABA Chief Executive Anna Bligh said: “Banks want an industry that is as competitive as possible, so customers get the best deals.
“It is particularly pleasing that the review will examine all parts of the financial services industry.
“Financial products and services help customers with some of their biggest decisions in life. The more choice customers have the more likely they are to find products that are right for them.
“We welcome the Productivity Commission inquiry, which will provide us with a thorough, robust and credible assessment of competition in the financial system.
“It adds to the 15 government or regulatory inquiries underway to make banking better for customers,” she said.
There are currently 144 authorised deposit-taking institutions operating in Australia, over half of which are banks, including retail, investment and mutual banks. The other half are predominantly credit unions and building societies.
Canstar data shows there are 91 institutions offering almost 3,500 housing loans, 1,300 deposit accounts, 196 credit cards, and 185 business lending options.
“The banking industry pledges its full support and assistance to the Productivity Commission review,” Ms Bligh said.
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“This is about engaging with the entire banking ecosystem in order to ensure the accessibility of the sector’s services are best serving our diverse community now, and into the future.”
“What is underpinning this bank failure is a number of things, but not least of all, it’s a very niche bank with high exposure to one part of the economy. And that’s the part of the economy that’s been quite volatile and troubled”
The Treasurer has indicated that the federal government is closely monitoring the situation.