The head of the Australian Competition and Consumer Commission said Thursday that when it comes to mortgage prices, the behaviour of Australia’s big four banks looks more like synchronised swimming than vigorous competition.
In a speech at the AFR Banking and Wealth Summit laying out the findings of the ACCC’s interim report on competition in the residential mortgage industry, Chairman Rod Sims said the four largest banks benefit from a lack of competition and don’t want to do anything to rock the boat.
“What we found is that the pricing behaviour of the Inquiry Banks appears more consistent with ‘accommodating’ a shared interest in avoiding the disruption of mutually beneficial pricing outcomes, rather than vying for market share by offering the lowest interest rates,” Sims said.
Sims said this manifests in the banks setting their interest and discount rates in relation to one another; not competing on interest rates; and generally moving their interest rates at the same time.
Latest posts by Cat Fredenburgh (see all)
- ASIC email forwarded by Gadens lawyer was proper service, judge says - July 18, 2018
- Judge dismisses challenge to surf park lease - July 18, 2018
- Judge limits ‘impermissibly wide’ subpoenas in Rinehart family feud - July 17, 2018