Depositors seek safety in majors

Commonwealth Bank, Westpac, ANZ and NAB and St George all increased their deposits in the last few months according to the Australian Prudential Regulation Authority.

CBA's Mark Buckman, head of marketing, says: “Safety and security have never been so important to customers and have definitely increased in customers' minds as they see major banks in the US and Europe collapse.”

Westpac's head of marketing, Andrew Seager, says “In September last year, when these issues started to take hold in Australia, that's when you had the most reaction from customers, both consumers and business. It's when the flight to quality started.”

The major banks have also benefited from less competition from non-bank lenders and smaller institutions as wholesale funding costs have risen.

Source: Sydney Morning Herald