Banks still dominate deposits and mortgages

The latest data from the Australian Prudential Regulation Authority shows the big four banks control 83 per cent of home loans up from about 67 per cent in 2007, after the Commonwealth Bank and Westpac acquired Bankwest and St George, respectively.

The regionals – Bendigo and Adelaide Bank, Suncorp and Bank of Queensland – command 6.8 per cent of home loans, while in deposits, the big four banks hold market share of 80 per cent.

"There has been a fundamental shift in the market," said Credit Union Australia chief executive Chris Whitehead. "We now have this incredible consolidation, a real oligopoly and a real sense the market lacks real competition.”

They do have incredible market power, they do have funding advantages so, yes, we have to compete on price, but you have to challenge how sustainable is that competition in the longer term when the major banks have a significant advantage on funding," he said.

Source: The Australian