Banks offer 'quite strong' competition on deposits, says Stevens

Wednesday 18 August 2010

Article by Mozo

Australia's major banks are offering sufficient competition on savings accounts, Reserve Bank governor Glenn Stevens has said.

Mr Stevens suggested that while competition is waning in terms of lending, the market is still quite competitive for Aussies who may wish to compare savings accounts or other deposit options, the AAP reported.

"You can get very good deals on deposits because the banks for various reasons want to raise the share of their total funds in the country's deposits," he noted.

"So the focus of competition has actually shifted. There is still some there but it is in a different place."

Mr Stevens was responding to a question at a forum in Perth yesterday (August 17th) in which it was suggested that there is not enough competition in the domestic banking system and that foreign banks are not playing a big enough role.

He conceded that foreign banks have found it difficult to establish strong branch networks for personal banking in Australia, with them instead more likely to get involved in corporate lending.

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