From the banking bible, Banking Day, today:
Bank oligopoly too cosy for Sims
23 January 2012 7:03am
The Australian Competition and Consumer Commission has voiced a wish for more competition from foreign banks, and suggested the present market structure is too "cosy".
In an interview with News Limited's Sunday newspapers, published yesterday, ACCC chair Rod Sims said: "Normally four players in a market should lead to a lot of competitive activity.
"In the banking sector it seems to need more because even though there are four of them there is a lack of full and effective competition."
Sims encouraged foreign banks to open in Australia.
"I think the four of them [the major banks] feel they are protected from others entering the market and that makes for arrangements that are too cosy for consumers," Sims said.
The News Limited newspapers reported that Sims said more foreign banks should open up business in Australia to put pressure on the local banks.
"If we can see any behaviour by the banks that is preventing competition, any misuse of market power or any collusive agreements, we will move," he said.
