Big four still own 87% of mortgage market share
(11 January 2011 – Australia) The dominance of Australia’s major banks in the mortgage market remains despite a year-long push by the Federal Government to bolster competition.
BusinessDaily research reveals the 'big four' have barely ceded market share since Treasurer Wayne Swan launched a stinging attack late in 2010 and pledged to redraw the competitive landscape, the Herald Sun reported.
Australian Prudential Regulation Authority (APRA) figures show the major banks have A$926 billion worth of home loans on their books, from a total pool of A$1.07 trillion.
The big four - the Commonwealth Bank (CBA), Westpac, National Australia Bank (NAB) and ANZ - increased their mortgage books by A$61 billion.
The CBA remains the market leader, with A$305 billion of home loans, including A$44 billion at subsidiary BankWest.
Westpac was next biggest, with A$283 billion.
NAB continued to grow its mortgage book far faster than the other major lenders and now has A$176 billion worth of mortgage assets.
The group has opened up a sizeable lead on ANZ, which has a A$161 billion home loan book.
After Melbourne Cup Day 2010, when the major banks all lifted home loan rates beyond the Reserve Bank of Australia (RBA)’s official cash rate increase the Government announced reforms.
At the time, Mr Swan said: 'I don't mind if people want to stay with the big banks providing it's an active choice, not an act of coercion.
''We're not here with a package that does anything other than attend to what are competitive roadblocks in the flow of finance in our financial system.
'We're introducing three broad streams of reform to empower consumers to get a better deal, to help smaller lenders put more competitive pressure on the big banks and to secure our financial system so it can continue to provide a sustainable flow of credit to households and businesses.'
Australian Prudential Regulation Authority (APRA) figures show the major banks have A$926 billion worth of home loans on their books, from a total pool of A$1.07 trillion.
The big four - the Commonwealth Bank (CBA), Westpac, National Australia Bank (NAB) and ANZ - increased their mortgage books by A$61 billion.
The CBA remains the market leader, with A$305 billion of home loans, including A$44 billion at subsidiary BankWest.
Westpac was next biggest, with A$283 billion.
NAB continued to grow its mortgage book far faster than the other major lenders and now has A$176 billion worth of mortgage assets.
The group has opened up a sizeable lead on ANZ, which has a A$161 billion home loan book.
After Melbourne Cup Day 2010, when the major banks all lifted home loan rates beyond the Reserve Bank of Australia (RBA)’s official cash rate increase the Government announced reforms.
At the time, Mr Swan said: 'I don't mind if people want to stay with the big banks providing it's an active choice, not an act of coercion.
''We're not here with a package that does anything other than attend to what are competitive roadblocks in the flow of finance in our financial system.
'We're introducing three broad streams of reform to empower consumers to get a better deal, to help smaller lenders put more competitive pressure on the big banks and to secure our financial system so it can continue to provide a sustainable flow of credit to households and businesses.'