By Jill Fraser for Lending Central

Six prominent economists are urging the government to consider setting up an inquiry into Australia’s financial system - the first in more than a decade.

In the line of fire is the growing power of the Big Four banks and the diminishing competition in the banking sector caused by the demise of the non-banks and second tier banks.

In an open letter sent to the Prime Minister and Treasurer the six signatories ask whether real competition can emerge while consumers face significant costs in switching between financial institutions, and if a government-regulated securitisation market provides an opportunity to consolidate mortgage account standards and more effectively enable switching.
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