The profitability of Australia’s major banks is under threat thanks to low interest rates, intense competition and open banking, according to a report from ratings agency Moody’s.
The big four banks have revealed the number of customers who’ve elected to reduce their mortgage repayments in the months following the recent cash rate cuts.
The major bank’s market share of residential mortgages fell by nearly 100 basis points to 81.2% in 2019, as subdued lending conditions and more intense competition put the squeeze on.
Treasurer Josh Frydenberg has today asked Australia’s competition watchdog to conduct an inquiry into the banking sector’s refusal to pass on recent interest rate cuts in full to its customers.