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Post by fastoy on Nov 9, 2010 11:17:55 GMT 10
The politicians make much of their intention to increase competition among banks. But a lot of the noise is just politics, once we actually have a look at the facts. Today;
Regional banks will have to focus on growth in 2010/11 and on accessing funding at a reasonable cost," the Bankers Association says.. "At present they are competing successfully for retail deposits, but are at a competitive disadvantage in wholesale markets due to their lower credit ratings and the greater cost of the government guarantee for the sector on wholesale funding,"
Banks recognised the benefit of the wholesale deposit guarantee introduced during the global financial crisis, but that was not a justification for "intrusive government intervention" in the banking system.
This highlights the difference between the big four, and the much smaller regional banks. A comparison with the US is interesting because there many of the bank failures have been small local and regional banks.
There might be some good come out of all this. At least it might force the big banks to actually look to doing some managing, versus their appalling record of non-managment ever since Don Argus bought Homeside.
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