The Four Banks empire strikes back
The big four banks have increased their market share above 92 per cent of loans in April.
Brokers have been encouraging their loan writers to favour non-bank lenders as a way of encouraging some competition and pushing the big banks to improve their service standards, the latest Australian Bureau of Statistics data on housing finance show that the banks still dominate.
Yesterday's ABS numbers show that banks accounted for 88.9 per cent of the 60,395 owner-occupied housing finance commitments, seasonally adjusted, reported in April 2009. Bank share climbed from 85.4 per cent in April last year to a peak of 89.1 per cent in March.
In terms of the value of housing finance commitments the banks are even more dominant. They accounted for 92.3 per cent of the $16.05 billion of loans, seasonally adjusted, written in April. The 60,395 new loans represented a 14-month peak in activity but the pace of growth is slowing.
Source: The Sheet