Competition and stability are both important in the financial system.
There are currently over 140 authorised deposit-taking institutions (ADIs) 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.
The Australian economy has continued to expand over the past decade since the GFC, and key products like mortgage lending are among the most competitive they have been, offering Australian households with innovative features at competitive prices. Australian banks welcome competition and compete fiercely through not only price, but through constant innovations to products which continue to improve customers’ experience. Banks are acutely aware of the need to innovate and compete.