Australian regulators target banking 'oligopoly'

The chief executive of the Australian Competition and Consumer Commission, Rod Sims, announced on Monday that more competition is needed in the banking industry in Australia. Currently, 75% of the domestic market is controlled by the four biggest banks -- ANZ Bank, Westpac, National Australia Bank, and Commonwealth Bank of Australia.

Sims believes that the issue stems from the lower funding costs that these banks receive due to a government guarantee to save the banks if they get into trouble as well as some bank mergers that were approved prior to him serving as Chief. Another issue is the "cartel-like" attitude of these four banks. They copy each other, don't compete on price and don't chase market share.

The ACCC will release a final report later in the year where they are expected to make recommendations to decrease regulatory barriers on smaller banks and promote new banking rules that would enable consumers to more easily switch banks.

Article: https://www.ft.com/content/d940092a-25f2-11e9-8ce6-5db4543da632