Banking inquiry announced

The federal government has announced an inquiry into the banking system with the focus expected to be on competition in the mortgage market. To be conducted by the House of Representatives' economics committee, it will be chaired by NSW Labor MP Craig Thomson. "We need to open up competition in the retail banking and non-banking sectors, demystify the number of home loan products and offer a wide choice to the consumer," he said. The inquiry is expected to come under pressure to consider creating a commonwealth agency that could use the government's AAA rating to help non-bank lenders gain access to cheaper funds for home loans.

Source: The Australian Financial Review