BoQ Chief Says Retail Deposit Market Dysfunctional

Post by Sharat on April 19, 2010 · Under Australian Economy, Business News, Company News, Savings, banking · Comment 

David Liddy, chief executive of regional lender Bank of Queensland says the market for retail deposits has become dysfunctional, and wants the government to help restore competition between smaller regional lenders and the major banks.

“We have proved to ourselves that we could turn the deposit switch on pretty rapidly through our branch network last year and we did that, but we weren’t prepared this year to compete in what I think is unsustainable competitive markets. Can we go back into that market? Yes, but you would need to remain competitive, and at the moment I think it is quite dysfunctional.” he said.

Mr. Liddy added that as a result of the government’s necessary response to the financial crisis a banking oligopoly had formed.

“The demise of two of the major regional banks and several significant non-bank lenders, and the funding pricing disadvantage placed on smaller industry players, has and will continue to place more power in the hands of four major banks,” Mr Liddy said.

“I continue to urge our government to look for solutions and regulatory measures that not only maintain and improve our world standing in financial services but provide real options in restoring a competitive banking landscape in our country.”

BoQ said its normalised cash net profit — its preferred measure of profitability, which strips out volatile items — had climbed 15 per cent in the six months to the end of February to $97.2m amid cost savings and higher net interest income.

Compare Australian Savings Account Deals

Bookmark and Share

Related posts

Tags: , , , , , , , ,

Comments

Leave a Reply







Sponsored Ads