Australian Competition and Consumer Commission chairman Rod Sims has described Australia's banking sector as "cosy"... Conditions mixed across Queensland as Brisbane hits a record...
More competition needed in 'cosy' banking sector: ACCC
Australian Competition and Consumer Commission chairman Rod Sims has described Australia's banking sector as "cosy", according to an article in the Australian Financial Review.
"We do have concerns about the banking sector," Sims said on a panel at the ASIC (Australian Securities and Investments Commission) Annual Forum in Sydney.
Sims pointed out that growing bank profits and market market share in recent decades indicated a market where competition was not thriving and warned banks that this could limit growth opportunities in wealth management.
Since the global financial crisis, the share of big banks' assets as a proportion of all bank assets had increased from 65 per cent to around 78 per cent in 2014.
"On the one hand you have four major banks and lots of competitors in the market, which is a market structure that doesn't look too bad," Sims said. "But if you look at the statistics ... the profits have increased quite rapidly over the last 10 or 20 years as a share of GDP, and the market share of the big four banks has consolidated over the last 10 or 20 years. So you don't look at the market and say it is a vibrantly competitive market; you look at the market and say maybe it is a bit cosy."
Conditions mixed across Queensland as Brisbane hits a record
Brisbane looks to be continuing its run as a solid investment location, with analysis from the Real Estate Institute of Queensland (REIQ) revealing the city’s market saw a number of improvements over the December 2015 quarter.
According to the REIQ, the December quarter saw house prices in the Brisbane Local Government (LGA) Area hit a median price of $632,000, a new record for the LGA, after rising by 1.6%.
That increase makes it 14 straight quarters where the median house price in the LGA has increased and means it is 6.1% higher than during the December 2014 quarter and 14.2% higher than at the same time in2010.
REIQ chief executive officer Antonia Mercorella said Brisbane’s streak of price improvements showed the city is in the midst of a sustainable period of growth.
“Our market has avoided the pitfalls of a boom and bust cycle, performing consistently over the past 14 quarters, which is more than three years of sustained growth,” Mercorella said.
“I know some property owners in Sydney and Melbourne who envy that record,” she said.
Australian Competition and Consumer Commission chairman Rod Sims has described Australia's banking sector as "cosy", according to an article in the Australian Financial Review.
"We do have concerns about the banking sector," Sims said on a panel at the ASIC (Australian Securities and Investments Commission) Annual Forum in Sydney.
Sims pointed out that growing bank profits and market market share in recent decades indicated a market where competition was not thriving and warned banks that this could limit growth opportunities in wealth management.
Since the global financial crisis, the share of big banks' assets as a proportion of all bank assets had increased from 65 per cent to around 78 per cent in 2014.
"On the one hand you have four major banks and lots of competitors in the market, which is a market structure that doesn't look too bad," Sims said. "But if you look at the statistics ... the profits have increased quite rapidly over the last 10 or 20 years as a share of GDP, and the market share of the big four banks has consolidated over the last 10 or 20 years. So you don't look at the market and say it is a vibrantly competitive market; you look at the market and say maybe it is a bit cosy."
Conditions mixed across Queensland as Brisbane hits a record
Brisbane looks to be continuing its run as a solid investment location, with analysis from the Real Estate Institute of Queensland (REIQ) revealing the city’s market saw a number of improvements over the December 2015 quarter.
According to the REIQ, the December quarter saw house prices in the Brisbane Local Government (LGA) Area hit a median price of $632,000, a new record for the LGA, after rising by 1.6%.
That increase makes it 14 straight quarters where the median house price in the LGA has increased and means it is 6.1% higher than during the December 2014 quarter and 14.2% higher than at the same time in2010.
REIQ chief executive officer Antonia Mercorella said Brisbane’s streak of price improvements showed the city is in the midst of a sustainable period of growth.
“Our market has avoided the pitfalls of a boom and bust cycle, performing consistently over the past 14 quarters, which is more than three years of sustained growth,” Mercorella said.
“I know some property owners in Sydney and Melbourne who envy that record,” she said.
