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

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

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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)