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.
A report by Australia’s consumer watchdog the ACCC into foreign currency conversion has found Australians are getting ripped off to the tune of millions of dollars, and the big four banks are partly to blame.
The long-running, ANZ-part-funded program Saver Plus offers up to $500 in matched savings to those who are perhaps struggling to save money on a regular basis.
The lack of a cash rate cut in August hasn’t stopped some of Australia’s largest banks from lowering term deposit rates, with each of the big four slashing rates for fixed-rate savers.
In the wake of cuts to variable home loan rates following the Reserve Bank’s decision to lower the cash rate for a second time in as many months, a number of lenders have also made big rate reductions to fixed home loan rates.