DOCSLIB.ORG

M&A Outlook: Australian Financial Services Towards 2030

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
M&A Outlook: Australian Financial Services Towards 2030 M&A Outlook: Australian Financial Services Towards 2030 minterellison.com Introduction Welcome to the second edition of the MinterEllison M&A outlook series. The financial services sector is one of Additional drivers are bringing We have asked Australia’s most dynamic and innovative transformational change to the financial members of our industries, and continues to undergo services sector. These drivers include transformational change. Set against changes to prudential standards, shifting cross-disciplinary the backdrop of uncertain economic customer expectations, increased team to share conditions and the wide-ranging, stakeholder management, technological their key insights continuing ramifications of the Financial advancements and new competitive and on the future Services Royal Commission (FSRC), commercial threats. direction of the significant changes in the financial services Victoria Allen industry will continue over the short to However, many of these drivers are moving industry. We would medium term as it addresses a myriad of the sector in different directions and there welcome the Partner issues. These include a need to restructure, will be important trade-offs to be made by opportunity address shortcomings in culture and market participants over time. This report [email protected] explores how M&A may be one of the key to discuss its respond to competition from traditional content with you and non-traditional players. responses to some of these underlying drivers in the next few years. We explore in more detail. M&A activity will be one mechanism open how financial services companies might to institutions in the sector to address the best position themselves for the longer- collective impact of these issues on the term challenges that lie ahead. organisation, its business and its reputation. The recommendations of the FSRC are a catalyst for simplification, long term change and an opportunity to re- establish community trust. The Federal Budget provided more funding to ASIC and APRA to increase their enforcement activities, and for an increased role for Rahoul Chowdry regulators across the spectrum of financial Partner, Financial Services services businesses. Industry Lead [email protected] 2 M&A Outlook: Australian Financial Services Towards 2030 Contents Industry Climate: Financial Services at the cross roads 4 Part D Technology 46 Summary of key drivers of M&A 5 Technology as a competitor in financial services 47 Technology as an enabler, with a focus on the customer 52 Part A Short term M&A context and outlook 6 A key enabler in the drive to acquire and retain customers 54 Short term M&A context and outlook 7 Reducing customer friction 55 Recent M&A developments in financial services 11 Personalised offerings using artificial intelligence Short term predictions 12 and machine learning 56 Divestment of wealth management 17 24/7 capabilities and availability through multichannel delivery and digital payments 58 Recent international trends 18 Financial reporting 63 Regulatory reporting aided by regtech 64 Part B Long term drivers 21 International drivers in technology 65 Long term drivers 22 Coding error and Australia’s largest ever civil penalty 66 Economic and commercial issues 24 Are branch networks now legacy systems? 67 Funds management and investment platforms 32 Part E Conclusions and Key Contacts 68 Part C Governance & culture, and regulatory issues 33 Towards 2030 – M&A will be an important Governance & culture, and regulatory issues 34 mechanism for boards and management 67 The FSRC implementation roadmap 37 The BEAR case on potential talent gaps 40 About Us 71 Regulation and compliance costs 41 Marching towards Basel IV 42 Further regulatory changes likely in superannuation 43 Australian regulatory structure and its impact on M&A 44 DISCLAIMER: (All financial data and figures including share price information is represented as at 31 July 2019 unless specifically noted). MinterEllison does not represent or warrant that any information provided to you in this document is accurate or complete, or that reasonable care has been taken in the preparation of this document. All information has been taken from publicly available sources. You must make and rely upon your own evaluation of the information in this document. Except as, to the extent, required by law, MinterEllison will not be liable for any direct or indirect loss or damage arising in any way out of the use by you of the information in this document. This document is supplied to you on the condition that it and the contents are confidential and must be kept confidential and not disclosed to any third party. MinterEllison 3 Industry climate: Financial services at the crossroads The final report of the Financial Services Royal Commission will undoubtedly act as a catalyst for the start of a longer term transformation within the financial services sector. However, it also coincides with the emergence of several other factors that are likely to also drive significant change within the industry. Some of these relate to issues highlighted by the FSRC, including changes to governance, culture, remuneration, simplification and the need to establish trust. Other factors include an increased focus on the customer (assisted by the move to ‘open banking’), technological changes, and increased competitive and commercial threats. Competitive factors, regulatory costs and Significant regulatory change is upon us. In addition, market dynamics and This report considers the factors driving lack of scale will result in M&A being one of Change is occurring not only from new competitive threats are driving changes in change in the sector, as well as setting the tools that is increasingly considered for regulations, but also from the stronger the sector and providing other reasons for out our M&A outlook. While it is difficult addressing competitive pressures faced by enforcement of existing regulations. The reassessment by decision makers. Overall, to predict what the changes in the sector financial institutions. government’s FSRC recommendation the prospects for profitability and growth, will be in the coming 10 years, ‘business implementation roadmap, the introduction particularly for the larger financial services as usual’ will not look the same as it does While the short term impact from some of the Banking Executive Accountability players in Australia, look to be challenging. today. It will no doubt be a challenging of the changes discussed in this report Regime (BEAR), the impact of Open Data Economic and demographic changes environment for management and boards are more foreseeable than longer term legislation, Productivity Commission including lower inflation, interest rates and to delicately balance responses to the impacts, the long term impacts are likely to enquiries, changes to banking capital economic growth, high levels of household numerous competing issues facing the create the greatest need for M&A. requirements (both in Australia, and debt, growing life expectancy and sector. With many companies slow to Despite solid fundamentals, we anticipate perhaps more acutely, in New Zealand), increasing urban density are all combining recognise the fall in the long term cost of market conditions are shifting which and increasing enforcement by regulators, at the same time. Institutions are facing capital, it’s an opportune time for M&A, and are likely to create additional pressures are providing Australian financial services increasing competition from overseas there are many factors that will influence on financial services institutions. These institutions and investors with new providers and new, nimble and well-funded short term and long term decision making challenges may create triggers for regulatory and compliance challenges technology driven upstarts, which are in the future. institutions and competitors to undertake and questions for their business models. delivering powerful customer experiences strategic reviews. There will be increased onus on boards and and seeking to disrupt the status quo. management to assist in this transformation process in a timely fashion. 4 M&A Outlook: Australian Financial Services Towards 2030 Extent to which Issues Short term impact Long term impact Summary management can influence of key drivers Culture and governance n u u BEAR n u u of M&A Regulation and compliance costs u n n Basel IV n l l Further regulatory change in superannuation n n l Focuses on culture and International experience u n l governance, customers and Increased scrutiny from regulatory bodies n n l business models are among Governance and regulatory the key drivers of M&A which NZ regulatory capital changes l n l management can influence Bigtech l u l (as highlighted in Figure 1). Fintech u u n Neobanks n n n White labelling n u l International Players Growth l n l Competition Open banking l u n Consolidation n n n Legacy IT/ageing infrastructure u n n Branch networks optimisation n n n Customer focus l u u Technology Digital banking l u n Artificial intelligence/robo advice l u l Figure 1 – Key drivers of M&A, impacts High household debt l n l and extent to which management Lower credit growth can influence them. n u l Subdued yields n u l l Low n Medium u High Overseas funding n n l Source: MinterEllison Economic Weaker asset growth n u l Focused business models l n u MinterEllison 5 Part A Short term M&A context and outlook 6 M&A Outlook: Australian Financial Services Towards 2030 Short term M&A context and outlook The market value of banks stocks has recovered by General Life Banking 8% over the year ending Insurance Insurance October 2019 as investor concerns regarding the The large Australian general insurers have Even before the FSRC commenced, the CBA’s divestment of its 20% stake in FSRC abated. This has been seeking to streamline their businesses, Australian life insurance segment had seen Vietnam International Commercial Joint occurred despite weaker simplify management structures and lift strong M&A activity driven by offshore Stock Bank is the only pure banking credit growth and falling profitability.
Load more

Recommended publications
  • Times and the Tough Annual Report 2020 2019/20 Highlights
    Banking that works for you through the good times and the tough Annual Report 2020 2019/20 Highlights Vision Recognition Value Created To be the First $ % Choice for Easy 2.730M 88 Achieved strong profit in times of Reduced landfill wasteconsumption to Understand Named Australian uncertainty of $2.730M, allowing us by 88% Banking to continue our investment in your Mutual Lender of Credit Union The Year % Mission 77 Reduced paper waste consumption 859 by 77% Launched new initiatives to To help our strengthen customer services Customers, Inducted into the and celebrated with families, NSW Business entrepreneurs, individuals and 173 People and groups with 859 loans funded Supported 173 individuals, families, Community Chamber Hall of businesses and communities Realise Their Fame through COVID-19 Relief Packages For providing Excellence in $ and was successful in our application Dreams Professional Service, recognising our to participate in the Australian 85,000 Governments Coronavirus SME unprecedented three consecutive Partnered with over 50 local Guarantee Scheme year win in this category organisations and gave over $85,000 back to community groups across the Northern Rivers to make a real difference in the places we call home Awarded Excellence in Business At the NSW Business Chamber, Northern Rivers Regional Business Awards Contents Opening Statement CHAIRMAN & CEO’S At the heart of our strategy remains our focus on delivering a better DECLARATIONS REPORT 01 35 experience for our customers, businesses and communities. Opening Statement 01 Directors Declaration 35 Never before has this been so meaningful and timely in the unprecedented times in which we now find ourselves, and Financial Performance 06 Auditors Independence Declaration 36 as we continue our journey to invest in our systems, team, services and online technologies to be more responsive, Risk, Regulation, Compliance & Governance 08 relevant and digitally enabled.
    [Show full text]
  • Supplementary Product Disclosure Statement
    Supplementary Product Disclosure Statement. This document is a Supplementary Product Disclosure Statement issued by Cuscal Limited ABN 95 087 822 455 AFSL 244116 and supplements the Westpac Global Currency Card Product Disclosure Statement dated 31 October 2018. From 6 November 2020, this Supplementary Product Disclosure Statement must be read together with the Westpac Global Currency Card Product Disclosure Statement. The amendments to the Product Disclosure Statement are as follows: Page 7, Introduction, Significant Benefits, seventh paragraph, delete “You will be provided with two Cards.” and insert “You will be issued a Card.” Page 9, Contact Westpac’s Customer Relations and Support Team, delete whole section and insert: “Westpac is here to help. If Westpac can’t resolve your complaint at your first point of contact with them, they will escalate it to their Customer Solutions Team. Telephone 132 032 (8am-8pm 7 days) Online westpac.com.au ‘Feedback and complaints’ or ‘Contact us’ pages, or use the Westpac Mobile Banking App Mail Westpac Customer Solutions, Reply Paid 5265, Sydney NSW 2001” Page 12, Section 3, Cards, first paragraph, delete “you will be issued with two Cards.” and insert “you will be issued a Card.” Page 12, Section 3, Cards, second paragraph, delete “Each of the Cards:” and insert “Each Card:” Page 12, Section 3, Cards, sixth paragraph, delete “The second Card is for your use only in the event that the first Card is lost or stolen or can’t be used.” and insert “If you have a second Card, it is for your use only in
    [Show full text]
  • Australia's Best Banking Methodology Report
    Mozo Experts Choice Awards Australia’s Best Banking 2021 This report covers Mozo Experts Choice Australia’s Best Banking Awards for 2021. These awards recognise financial product providers who consistently provide great value across a range of different retail banking products. Throughout the past 12 months, we’ve announced awards for the best value products in home loans, personal loans, bank accounts, savings and term deposit accounts, credit cards, kids’ accounts. In each area we identified the most important features of each product, grouped each product into like-for-like comparisons, and then calculated which are better value than most. The Mozo Experts Choice Australia's Best Banking awards take into account all of the analysis we've done in that period. We look at which banking providers were most successful in taking home Mozo Experts Choice Awards in each of the product areas. But we also assess how well their products ranked against everyone else, even where they didn't necessarily win an award, to ensure that we recognise banking providers who are providing consistent value as well as areas of exceptional value. Product providers don’t pay to be in the running and we don’t play favourites. Our judges base their decision on hard-nosed calculations of value to the consumer, using Mozo’s extensive product database and research capacity. When you see a banking provider proudly displaying a Mozo Experts Choice Awards badge, you know that they are a leader in their field and are worthy of being on your banking shortlist. 1 Mozo Experts Choice Awards Australia’s Best Banking 2021 Australia’s Best Bank Australia’s Best Online Bank Australia's Best Large Mutual Bank Australia's Best Small Mutual Bank Australia’s Best Credit Union Australia’s Best Major Bank 2 About the winners ING has continued to offer Australians a leading range of competitively priced home and personal loans, credit cards and deposits, earning its place as Australia's Best Bank for the third year in a row.
    [Show full text]
  • Methodology Report
    Mozo Experts Choice Awards Deposits 2019 Every day, Mozo keeps track of thousands of products in banking, insurance and energy. Unlike some other awards, providers don’t ‘enter’ the Mozo Experts Choice Awards nor do they pay to be considered. Our in-house team of experts analyse all the product data they’ve been tracking and scour the market to see if there are any other worthy candidates. Then we use our data and our experience to make a hard-nosed assessment of those products, to identify which offer great value or market-leading features. We recognise the leading products with the Mozo Experts Choice Awards. ● For product providers, a Mozo Experts Choice Award is a thoroughly researched third-party endorsement of their product. ● For consumers, the Mozo Experts Choice Awards badge is a sign that a product is among the leaders in the market, and is worthy of consideration. This report lists the winners and explains the judging methodology for our 2019 Deposit awards. 1 ​ Deposits - 2019 Winners Transaction Accounts Everyday Bank of the Year Exceptional Everyday Account Bank of Sydney Everyday Saver Account Bankwest Hero Transaction Account Bankwest Qantas Transaction Account BOQ Specialist Everyday Plus Account Citi Global Currency Account Citi Plus Transaction Account ING Orange Everyday Macquarie Platinum Transaction Account Macquarie Transaction Account UBank USaver Ultra Transaction Account Up Bank Everyday Account Best New Transaction Account Citi Global Currency Account 2 ​ Student Bank Account Community First Credit Union Student
    [Show full text]
  • DEBIT INTERCHANGE REFORM SUBMISSION September 2002
    NATIONAL AUSTRALIA BANK DEBIT INTERCHANGE REFORM SUBMISSION September 2002 Page 1 of 5 NATIONAL AUSTRALIA BANK - DEBIT INTERCHANGE REFORM SUBMISSION Sep 02 1. Introduction The National fully supports the need for reform of debit card interchange and has been an active participant in the Eftpos Industry Working Group (EIWG) formed at the behest of the Reserve Bank of Australia (RBA). We believe that the objective of this reform should be to achieve a simpler more efficient and transparent pricing regime. We agree with the view expressed by the RBA and Australian Competition and Consumer Commission (ACCC) in their paper A Study of Interchange Fees and Access (“the Joint Study”) that the debit card network in Australia no longer needs an interchange fee. Furthermore we have always been of the opinion that there should be simultaneous credit card and debit card reform. This submission set out the background to the reform process, the options for reform and our views on it in more detail together with their rationale. It is made on the basis that credit reform occurs as per the access regime and standards issued by the RBA. The National reserves its position in relation to making further submissions on various matters raised both in this submission itself, and in general in relation to the overall progress of the RBA’s program of regulation. 2. Reform Process Background On February 19th 2002 the Reserve Bank of Australia convened a meeting of financial and selected other institutions that were major participants in the debit card network. At that meeting the RBA questioned participants that “whether an interchange fee is needed at all, given that some successful Eftpos systems, such as those in Canada and the Netherlands, operate without an interchange fee”1.
    [Show full text]
  • Select Committee on Financial Technology and Regulatory Technology
    The Senate Select Committee on Financial Technology and Regulatory Technology Select Committee on Financial Technology and Regulatory Technology Interim report September 2020 © Commonwealth of Australia 2020 ISBN 978-1-76093-108-7 This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Australia License. The details of this licence are available on the Creative Commons website: http://creativecommons.org/licenses/by-nc-nd/3.0/au/. Printed by the Senate Printing Unit, Parliament House, Canberra Committee Members Chair Senator Andrew Bragg LP, NSW Deputy Chair Senator Marielle Smith ALP, SA Members Senator Susan McDonald NATS, QLD Senator Rex Patrick IND, SA Senator Paul Scarr LP, QLD Senator Jess Walsh ALP, VIC Secretariat Lyn Beverley, Committee Secretary Christopher Sautelle, Principal Research Officer Kate Campbell, Senior Research Officer Elise Gruttner, Senior Research Officer Claire Rhodes, 2019 Graduate Program Margaret Cahill, Research Officer Shannon Ross, Administrative Officer Committee Webpage: http://www.aph.gov.au/senate_FinRegtech PO Box 6100 Phone: + 61 2 6277 3535 Parliament House Fax: + 61 2 6277 5818 Canberra ACT 2600 Email: [email protected] Australia iii Table of Contents Committee Members ........................................................................................................................ iii List of Recommendations ............................................................................................................... vii Chair's Foreword ............................................................................................................................
    [Show full text]
  • List of Participating Lenders - Phase 2
    List of Participating lenders - Phase 2 The Government is currently considering applications from lenders interested in participating in Phase 2 of the Scheme. The following lenders have been approved to participate in Phase 2. ANZ Banjo Bank Australia Bank of Queensland Bendigo and Adelaide Bank Ltd Bigstone Lending Commonwealth Bank of Australia Community First Credit Union Limited Credabl Earlypay Fifo Capital Finstro Securities Pty Ltd Flexirent Capital Get Capital Heritage Bank Limited Hume Bank Limited IQumulate Premium Funding Judo Bank Pty Ltd Liberty Financial Metro Finance Pty Ltd Moneytech Finance Moula Money National Australia Bank Limited Prospa Queensland Country Bank Limited / Regional Australia Bank Ltd Social Enterprise Finance Australia Southern Cross Credit Union South West Credit Union Speedy Finance Suncorp-Metway Limited TrailBlazer Finance Unity Bank Volkswagen Financial Services Australia Westpac Banking Corporation Zip Business List of Participating Lenders - Phase 1 The Government approved 44 lenders to participate in the Coronavirus SME Guarantee Scheme Phase 1. The following lenders were approved to participate in the Scheme. Phase 1 of the Scheme commenced on 23 March 2020 and closed for new loans on 30 September 2020. ANZ Australian Mutual Bank Limited Banjo Bank Australia Bank of Queensland Bank of us Bendigo and Adelaide Bank Ltd Commonwealth Bank of Australia Community First Credit Union Credabl Fifo Capital Australia Pty Ltd First Choice Credit Union Get Capital / Goulburn Murray Credit Union Heritage
    [Show full text]
  • Connections & Collaboration
    APCA Annual Review 2016 The Australia Payments Environment Connections & Collaboration APCA Annual Review 2016 Australian Payments Clearing Association 1 APCA Annual Review 2016 Connections & Collaboration Click here to return to Contents Contents Chair and CEO Message 3 The Australian Payments Clearing Snapshot 4 Association has Highlights 6 been at the heart of the Australian The Australia Payments Environment 7 payments system for Driving Payments 10 close to 25 years. Evolution As a member organisation and industry association, we have grown to represent the needs of a diverse set of stakeholders, as the payments system itself has evolved. With a clear understanding of the requirements Positioned for 14 of a digital economy, we are the home for the Future collaboration and cross industry innovation. In our role as self-regulatory body for payments, we bring rigour to the application of existing regulation and an inquisitive, front-footed Engaging with approach to supporting the requirements the Community 18 of the emerging payments landscape. Decision Making 22 Glossary & Contact 29 APCA has 103 members including Australia’s leading financial institutions major retailers, payments system This Annual Review is designed to provide our members and stakeholders with a summary of what was achieved operators and other in financial year 2015-2016. References in this report to payments service providers. a year are to financial year ended 30 June 2016 unless otherwise stated. A full list of our members is available on page 28. Australian Payments Clearing Association 2 APCA Annual Review 2016 Connections & Collaboration Chair and CEO message The Australian payments landscape has never been more vibrant and it’s for this reason that we have chosen the theme of ‘connections and collaboration’ for our annual report this year.
    [Show full text]
  • Participating Organisations | May 2021 Aon Rewards Solutions Proprietary and Confidential
    Aon Rewards Solutions Proprietary and Confidential Participating organisations | May 2021 Aon Rewards Solutions Proprietary and Confidential Participating organisations 1. AC3 26. Catholic Church Insurance Ltd 2. Accenture Australia Ltd 27. Cbus (United Super Pty Ltd) 3. AEMO 28. CITIC Pacific Mining 4. Allianz Australia Ltd Management Pty Ltd 5. AMP Services Limited 29. Coles Supermarkets 6. ANZ Banking Group Ltd 30. Commonwealth Bank of 7. Aon Corporation Australia Australia 8. APA Group 31. Crown Resorts 9. APRA AMCOS 32. CUA 10. ASX Group 33. Cuscal Limited 11. AusNet Services 34. CyberCX Pty Ltd 12. Aussie 35. Datacom Group Limited 13. Australia Post 36. Deloitte 14. Australian Pharmaceutical 37. Domain Industries Ltd 38. DXC Technology Australia Pty 15. AustralianSuper Pty Ltd Ltd 16. Auto & General Holdings Pty 39. Envato Ltd 40. Ernst & Young Services Pty Ltd 17. Avant Insurance Ltd 41. Fletcher Building 18. BAE Systems Australia 42. Flow Power* 19. BetEasy Pty Ltd 43. Fortescue Metals Group Ltd 20. BHP Group Limited 44. Foxtel 21. Blackmores Ltd 45. Frasers Property Australia 22. BPAY Group 46. FUJIFILM Australia Pty Ltd 23. Bunnings Group Limited 47. Fujitsu Australia Ltd 24. Bupa Australia 48. GBST Holdings Ltd - Global 25. Carsales.com.au Banking & Securities Corporate IT Remuneration Report (Australia) | Participating organisations | May 2021 1 Aon Rewards Solutions Proprietary and Confidential Transactions Company Ltd 49. Genworth 74. Nestle Australia Ltd 50. Gold Fields Australia Pty Ltd* 75. Network Ten Pty Ltd* 51. GPT Group 76. NRMA Motoring & Services 52. Greenstone Financial Services 77. NSW Land Registry Services* Pty Ltd 78. NTT Australia Pty Ltd 53.
    [Show full text]
  • ANNUAL REVIEW 2 4 6 8 10 About Us Chair and Highlights Consumer CEO Message Payment Trends
    Meeting the challenge ANNUAL REVIEW 2 4 6 8 10 About Us Chair and Highlights Consumer CEO Message Payment Trends Australian Payments Network Limited ABN 12 055 136 519 CONTENTS 12 14 20 26 30 Level 23, Tower 3 International Towers Sydney 300 Barangaroo Avenue Sydney NSW 2000 Our Year Managing Governance Policy and Board of Telephone +61 2 9216 4888 in Review the Payment Advocacy Directors Email [email protected] www.auspaynet.com.au Streams This Annual Review is designed to provide our members and stakeholders with an overview of developments and achievements in financial year 2019-2020. References in this report to a year are to financial year ended 30 June 2020 unless otherwise stated. We hope you enjoy discovering more 32 33 34 35 about your association. Governance Our Team Membership Glossary Framework Australian Payments Network is the industry association and self-regulatory body for payments. Through our network, we bring together a diverse range of organisations including financial institutions, major retailers, payment system operators and technology providers. Our members provide the products and services that enable individuals and public and private organisations to make and receive payments every day. Delivering on our purpose to promote confidence in payments, we work with a wide range of stakeholders to ensure the payments system continues to meet the evolving needs of organisations and individuals. As the self-regulatory body for payments our remit covers the following payment types. $ $$$ $$ $$$ $ $ $$$ $ Cards Direct entry High value Cash Cheques Issuers and Bulk Electronic High Value Australian Cash Australian Acquirers Clearing System Clearing System Distribution and Paper Clearing Community Exchange System System Additionally, AusPayNet’s COIN infrastructure network provides connectivity for low value payments.
    [Show full text]
  • Competition in the Australian Financial System
    Productivity Commission Inquiry into Competition in the Australian Financial System Australian Competition and Consumer Commission submission September 2017 0 Executive Summary The Australian Competition and Consumer Commission (ACCC) welcomes the opportunity to make a submission to the Productivity Commission’s (PC) Inquiry into Competition in the Australian Financial System. We note that the inquiry’s terms of reference centre on the banking sector. We have focussed this submission on promoting competition in the banking sector to enhance the welfare of all Australians. This submission provides our observations on the issues we consider may warrant consideration by the PC in the course of its deliberations. State of competition in retail banking markets A number of market structure and behaviour indicators, taken together, suggest that the current oligopoly structure of retail banking in Australia is not vigorously competitive, and has not been for some time. It is not clear that sustained high profits of the large banks (compared internationally) can be traced to exceptional performance. To the contrary, there appears to be an element that reflects the degree to which the competitors of the large banks are handicapped in their ability to effectively contest the market. We consider that there may be several factors impeding effective challenge by new entrants and smaller rivals, including but not limited to: government regulation and policies in the banking sector barriers arising from large banks’ expansion into other financial services markets, and barriers to customer switching. We recognise that there is an important role for government to safeguard the stability of the banking system. However, competition policy should not be viewed as a threat to this objective.
    [Show full text]
  • Australia (Including Non-Capital Market Issuance)
    RMBS Arrears Statistics Australia (Including Non-Capital Market Issuance) At September 30, 2020 RMBS Performance Watch | Australia at September 30, 2020 Arrears Statistics - Prime Australia Prime S&P Global Ratings Mortgage Performance Index (SPIN) 5.00% 200.0 4.50% 4.00% 160.0 (Bil. A$) 3.50% 3.00% 120.0 2.50% 2.00% 80.0 1.50% 1.00% 40.0 0.50% 0.00% 0.0 Apr-96 Oct-96 Apr-97 Oct-97 Apr-98 Oct-98 Apr-99 Oct-99 Apr-00 Oct-00 Apr-01 Oct-01 Apr-02 Oct-02 Apr-03 Oct-03 Apr-04 Oct-04 Apr-05 Oct-05 Apr-06 Oct-06 Apr-07 Oct-07 Apr-08 Oct-08 Apr-09 Oct-09 Apr-10 Oct-10 Apr-11 Oct-11 Apr-12 Oct-12 Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18 Oct-18 Apr-19 Oct-19 Apr-20 31-60 days 61-90 days 90+ days TCLB(Total current loan balance) Metrics (%) Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 31-60 days 0.32 0.33 0.34 0.36 0.40 0.40 0.44 0.47 0.33 0.29 0.23 0.23 61-90 days 0.20 0.19 0.19 0.22 0.22 0.23 0.20 0.22 0.25 0.19 0.17 0.14 90+ days 0.80 0.79 0.76 0.78 0.79 0.79 0.71 0.71 0.72 0.76 0.78 0.75 Prime SPIN 1.32 1.30 1.28 1.36 1.41 1.41 1.34 1.40 1.30 1.24 1.17 1.12 TCLB (Bil.
    [Show full text]