Bank competition, mergers and other fun
Posted by LC Team, Tuesday, May 26, 2009
ACCC head, Graeme Samuel, has come out swinging on bank competition in the last few days. He is concerned that banking competition may be barely workable with reports that non-bank institutions are hardly active in lending markets and, indeed, of new mortgages, just two banks, Commonwealth and Westpac, have captured 85% of that business.
CoreEconomics
Filed Under: Around the web
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Michael May 26, 2009
I am a small “honest” broker who has had accreditation withdrawn by CBA.
My Aggregator advises that I would have to pay a $500 fee for re-accreditation and submit three loans per quarter. If the criteria are not met within 6 months the accreditation will be lost again and the fee forfeited.
There are indications that other banks are also culling their lists.
If the other three major banks adopt the CBA approach, I would have to fill the major bank quotas ( 12 per quarter ) before I could consider sending a loan to another lender!!
How could I have a credible broking business without the big for banks on my panel?
How could I honestly represent that I can source the best loan if I am forced to look after the big four first, to retain my accreditations?
It appears that the big banks may be using their market power to crush the small honest broker, whilst also taking business from the smaller lender, due to the conditions placed on brokers.
Perhaps this is something else that Graeme Samuel could have a look at.