Australian Government Withdraws Bank Guarantees
Sunday, February 7th, 2010
It looks like easy times are over for banks in Australia, as the federal government announced it is withdrawing its wholesale guarantee and deposit support, which should generate healthy competition among the major banks concerning financial services offered.
That should also force the banks to start searching for and developing a variety of ways to generate revenue.
The four major banks in Australia enjoyed a period of reduced competition, allowing them to increase market share in deposits, mortgages, credit cards and small-business loans.
What the major banks are looking at is the lucrative wealth management sector, where there is huge potential in, which many not be repeated for a long time. The winner of that sweepstakes could emerge as the top banking dog in Australia going forward.
Banks have been preparing for this opportunity over the last couple of years by increasing their capital base to be ready to grow in the sector through strategic acquisitions.
Article by Gary B
The views expressed are the subjective opinion of the article's author and not of FinancialAdvisory.com
Tags: australia banking , australia business
• Nyrstar May Forego Expanding in Australia Because of Super Tax
• Macquarie Group Profit More Than Doubles in Second Half
• Sigma Pharmaceuticals CEO Quits After Terrible Annual Results
• Telstra (ASX:TLS) in Turmoil as CEO David Thodey Takes Charge
• Rio Tinto (ASE:RIO) Australian Executive Confesses to Accepting Bribes in China
• China Warns Australia on Rio Tinto (LON:RIO) Case
• Telstra Corp. (ASE:TLS) in a Time of Change
• Royal Dutch Shell (NYSE:RDS-B) Expected to Raise Arrow Energy Offer
• Arrow Energy (ASX:AOE) Gets $3 Billion Bids from Shell and PetroChina
• Business Council of Australia Pressures Government to Quickly Restore Surplus
• China Indicts Four Rio Tinto (LON:RIO) Employees
• What do you need to open up a bank accou...
• Where to buy bearer bonds?
• Where can i get a mortgage loan?
• How to apply for abn in australia?
• How safe are reits?
• Which are the best mortgage brokers in N...
• What is a libor swap?
• Which is the biggest bank in the UK?