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Australian Brokernews is leading with a bold headline this morning on the MFAA predicting the end of the non-bank sector when the exit fee ban comes into effect in July.
But the story refers to the release of ABS stats last week where the association said that smaller lenders are losing ground to the banks that have a substantial 90.2% of the market - the highest since September 2010.
In contrast, non-banks have only 1.9% - down from 13.6% in the pre-GFC period.
CUBS have 7.9% market share.
CEO Phil Naylor said these ABS figures support the MFAA contention that the upcoming elimination of exit fees will not increase competition.
He added that most of the majors have dropped their exit fees ahead of government regulation, resulting in a churning of loans among the major banks - but to the detriment of non-bank lenders.
"On the basis of this trend, non-bank lenders will disappear when exit fees are totally banned in July. How can it be good for consumers when the most competitive lenders are forced out of the market?" he said.
The dangers of dips in market confidence - After more than fifteen years of basking in national admiration for the manner in which it transformed the monolithic Australian banking industry, the alternate lender sector suddenly faces the prospect of an uncertain future.
Too Smart: Wayne Swan follows ban with RMBS injection - FirstMac's chief executive Kim Cannon has lauded Wayne Swan's decision to pump an additional $4 billion into the Residential Mortgage Backed securities (RMBS) market.
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