Future bank mergers unlikely - ACCC
14/04/09 16:48
Going forward the majors will have a tough time getting mergers and acquisitions across the line, according to the chairman of the ACCC.
Following the majors' refusal to pass on the latest RBA rate cuts in full, the chairman of the Australian Competition and Consumer Commission (ACCC) Graeme Samuel, expressed concern at the state of competition in the banking sector.
"The risk is with four big banks, because of the diminished role of non-bank financial institutions, we end up with less than intense workable competition," he told the Australian Financial Review.
Following the majors' refusal to pass on the latest RBA rate cuts in full, the chairman of the Australian Competition and Consumer Commission (ACCC) Graeme Samuel, expressed concern at the state of competition in the banking sector.
"The risk is with four big banks, because of the diminished role of non-bank financial institutions, we end up with less than intense workable competition," he told the Australian Financial Review.
"That means it is easier for the big banks to conduct their business with perfectly legal, tacit co-ordination of pricing."
He went on to say that the ACCC was becoming "increasingly concerned" that the lack of competition would ultimately reflect in costs to consumers.
In keeping with these concerns Samuel said the ACCC is likely to block further bank mergers to prevent the sector from becoming even less competitive.
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He went on to say that the ACCC was becoming "increasingly concerned" that the lack of competition would ultimately reflect in costs to consumers.
In keeping with these concerns Samuel said the ACCC is likely to block further bank mergers to prevent the sector from becoming even less competitive.
Full Story