[Sydney 13th Reuters]-Australia's Health Regulatory Authority (APRA) Secretary Buyers speaks in Melbourne on 13th and record low interest rates are likely to make the four major banks competitively competitive with small and medium-sized banks I showed the view.
The four major banks are said to have relatively low capital and low funding costs.
He said low interest rates would lead to lower profitability and lower capital generation, but all banks must adapt to a low interest rate environment. Small and medium banks indicated that they would be at a disadvantage in the competition.
He said that this situation is looking into the long-term challenges to the banking system and competition. “If the ultra-low interest rate environment is prolonged, it will be necessary to carefully consider how the business model and business will be affected (APRA).”
In the country, the market share of the four major banks has reached 80%, and there are many views that competition is lacking.