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Recent articles in the Sydney Morning Herald and The Age claiming Big Four margins have increased are based on manipulation of APRA data.
So says the Australian Bankers’ Association as it hits back at those media claims, Brokernews reports.
According to the ABA, APRA figures indicate margin fell from 2.0% in 2009 to 1.9% in 2010.
Also comparisons between the June quarter 2009 and June quarter 2010 show a decrease from 2.0% to 1.9%.
Not passing up an opportunity for a punt, it said the reason for the decline is that banks have not passed on the rising funding costs.
Meanwhile, AFG’s managing director Brett McKeon has come out and said that governments bank bashing is doing nothing to stimulate competition in the industry.
According to The Advisor, McKeon, “determined to reinvigorate competition within the home loan sector” has put a three point plan to the government.
“The first point in my plan involves the government providing an assurance that no further consolidation will be allowed by the Big Four banks, which already write over four out of five of all new home loans.
“Secondly, the government should meet with smaller lenders to discuss future policy initiatives that will stimulate non-major market share to levels typically seen in other developed countries. Currently in Australia, non-majors have around 15% of new mortgage sales.
“And thirdly the government needs to draft a policy that will create a more level playing field in providing access to funding for smaller lenders, enabling them to compete more effectively for market share,” he said.
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