This article is from the Australian Property Journal archive
AUSTRALIAN banks are set to come under scrutiny through an investigation conducted by the ACCC.
The investigation is set to take place to determine the differences between how banks set interest rates for bank deposits and home loans.
It follows the direction of the Federal Government to explore Australia’s retail deposit market.
An issues paper will be released in the coming months with the ACCC expected to report to the Treasurer with findings by 1 December, 2o23.
ACCC chair Gina Cass-Gottlieb understands the need for the inquiry, with banks seemingly passing on most of the cash rate rises to home loan interest rates.
“We welcome this direction from the Government to shine a light on the retail deposit market and rate-setting decisions of banks,” Cass-Gottlieb said.
“We are aware that deposit and savings accounts are an important source of income for many Australians, typically supplementing their income from employment, superannuation and the pension.”
There’s a total of over $1.3 trillion in savings and deposit accounts across Australian households and it appears as though there have been less increases in interest rates and smaller to some of the banks deposit products.
The inquiry will have the ACCC communicate with financial regulators such as the Reserve Bank of Australia, the Australian Prudential Regulation Authority and the Australian Securities and Investments Commission.
“We will also examine the extent to which consumers can benefit from shopping around and switching, and what other barriers are stopping consumers from seeking a better return on their savings,” Cass-Gottlieb added.
