“COBA requests allocation of funding to enable the Productivity Commission to complete the first such review by the end of 2017. The Government’s current commitment is to commence, but not complete, such a review in 2017. Given the state of competition in the banking market, we can’t afford to wait.”
The House Economics Committee report found:
· Australia’s banking sector is an oligopoly
· Australia’s four major banks have significant pricing power, higher than average returns on equity and large market shares
· A lack of competition in Australia’s banking sector has significant adverse consequences for the Australian economy and consumers.
“COBA’s recently commissioned Deloitte Access Economics (DAE) report on implementation of key FSI recommendations shows that significant work remains unfinished.
“We strongly endorse DAE’s suggestion that the Productivity Commission review should consider whether regulators’ rules and procedures are creating inappropriate barriers to competition and whether there is appropriate regard to other business models, including the customer owned model”, added Mr Degotardi.