Banks may use credit crunch to fight for market share

The Commonwealth Bank and Westpac are likely to take advantage of the tightening credit market to claw back market share lost over the past decade to rivals ANZ and NAB. A report by JPMorgan and Fujitsu Consulting says that CBA's large deposit base and Westpac's lower level of discounting and smaller proportion of lower-margin fixed rate mortgage sales mean that they are more insulated from current credit conditions. JPMorgan banking analyst, Brian Johnson, said “I think CBA and Westpac will be very aggressive in not repricing, so to the extent that NAB and ANZ do reprice, even more market share will go to those two banks”.