House of Representatives Committees

| House of Representatives Standing Committee on Economics

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Competition in the banking and non-banking sectors

21 November 2008

© Commonwealth of Australia 2008
ISBN 978-0-642-79125-2 (Printed version)
ISBN 978-0-642-79126-9 (HTML version)

View the report as a single document - (PDF 506KB)


View the report as separate downloadable parts:

Preliminary Pages (PDF 108KB)

Chair’s foreword
Membership of the Committee
Committee Secretariat
Terms of reference
List of abbreviations
List of recommendations

 
Chapter 1 Introduction (PDF 87KB)

Background
Objective and scope
The current state of the retail banking and non-banking industries
The impact of the credit crisis
Chronology of events
The mortgage market and other financial services
Conduct of the inquiry
Reader guide and structure of the report

 
Chapter 2 Competition in the mortgage market (PDF 121KB)

Introduction
The mortgage market – pre and post 1992
The rise of the non-banking sector
Product development and bank lending margins
The US sub-prime mortgage crisis
The US mortgage and housing market – what went wrong?
The global impact of the US sub-prime mortgage crisis
Competition post August 2007
The current state of the non-banking sector
Competitiveness of the ‘big four’
The future outlook
International comparisons
How does Australia’s market compare internationally
The key strengths of the Australian financial system

 
Chapter 3 Options to increase competition (PDF 158KB)

Introduction
Trends in the cost of funding
The state of the securitisation market
Will securitisation return to its pre 2007 levels
Does Australia need an ‘AussieMac’ model
How would an ‘AussieMac’ model work
The US and Canadian experience
Conclusions
Reserve Bank of Australia’s repurchase agreements
The extent of their usage and effectiveness
Conclusions
Australian Office of Financial Management
Covered Bonds
Conclusions
Bank of England Special Liquidity Scheme
Conclusions
The government’s support package
Investigating and addressing issues of concern
Conclusions
Positive credit reporting
Conclusions

 
Chapter 4 The account switching facilitation package (PDF 165KB)

Introduction
Account switching
The account switching reform agenda
Card scheme inclusion
Progress on the switching package
Conclusions
Account number portability
Australia’s Bulk Electronic Clearing System
Account number ownership
Portability of account numbers in the UK
A central account registry
Electronic facilitation of switching
Conclusions
Other issues
Entry fees
Exit fees
The Australian experience
The impact of mortgage entry and exit fees on switching and competition
The social impact of entry and exit fees
Regulation of entry and exit fees
Improving regulation
Conclusions

 
Chapter 5 Consumer protection for borrowers (PDF 146KB)

Introduction
Progress with Commonwealth regulation of credit
Mortgage brokers
Should the customer pay the broker?
Conclusions
Financial literacy
Conclusions
Predatory practices relating to credit cards
Conclusions
Sales targets and responsible lending
Conclusions
Consumer information to compare products
Conclusions
Disclosure requirements
Conclusions
External dispute resolution
Conclusions

 
Appendix A – Submissions (PDF 81KB)
 
Appendix B – Exhibits (PDF 56KB)
 
Appendix C – Hearings and witnesses (PDF 50KB)

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