The graph below shows how the market share of the major banks has
jumped from around 80% of the market to over 90% since the onset of the
GFC.
Source: ABS
Do the banks have a vested interest in not passing on rate cuts in full (or at all) or
being competitive in the home loan market, as well as supporting "low" consumer confidence?
They appear to have managed a correction in the property market (not as much as some would like - Steve Keen and Co), grown their market share, cut costs by shrinking their lending businesses and outsourced the lending piece to brokers who cost the bank nothing unless they write a loan, and they continue to seem to be managing further price adjustments in certain price points with lending strategies. With market share like this, why would they want "new" business when all they need to do is yield manage their existing business better to grow profit.
They appear to have managed a correction in the property market (not as much as some would like - Steve Keen and Co), grown their market share, cut costs by shrinking their lending businesses and outsourced the lending piece to brokers who cost the bank nothing unless they write a loan, and they continue to seem to be managing further price adjustments in certain price points with lending strategies. With market share like this, why would they want "new" business when all they need to do is yield manage their existing business better to grow profit.
Oddly, one of the beneficiaries of the GFC and lagging consumer confidence appear to be banks - at least in Australia.
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