Swan welcomes competition in high street banking

Treasurer Wayne Swan has welcomed heightened levels of competition between some of Australia's biggest consumer-facing banks.

Just this week, National Australia Bank (NAB) launched its latest effort to win new customers from its rivals, promising prospective customers improved rates on existing home loans.

On the back of this, several rivals, including the likes of ANZ, Commonwealth Bank and Westpac, have launched similar initiatives, prompting Australia's economic chief to welcome the emerging battle between the big banks.

"It's terrific to see the NAB throwing down the gauntlet to the other banks," Mr Swan said.

"It's about time they had a scrap, it's about time we had a bit of competition."

Alongside prominent adverts in the mainstream media, NAB's new campaign has seen the bank give its customers free 'break-up' CDs to celebrate its move away from its rivals.

Central to the bank's new lending policy is its decision to abolish exit fees for its mortgage customers.

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