Whilst it is expected that Joe Hockey’s inquiry into the financial system will carry a strong focus on competition within the sector, Westpac (ASX: WBC) has urged that a broader approach be taken, including looking at what helped Australia cope through the global financial crisis (GFC).
Although Hockey has not yet set terms of reference for the inquiry, there have been at least three Senate enquiries into competition in the banking sector. Given that Westpac, Commonwealth Bank (ASX: CBA), ANZ (ASX: ANZ) and NAB (ASX: NAB) control roughly 80% of the market’s deposits and home loans, competition will be one of the more obvious issues to be addressed.
However, Westpac’s institutional boss Rob Whitfield has stated that the other issues that Hockey will need to look into much deeper include taxation, superannuation, insurance and infrastructure. He said “What we don’t want to see is a really narrow-based inquiry.”
As highlighted by The Sydney Morning Herald, customer-owned bank Bankmecu recognises that one of the key issues to be addressed is the tax treatment of deposits, which are currently taxed more heavily than shares and other asset classes. Meanwhile, NAB’s executive general manager of capital markets Steve Lambert hopes that the inquiry will be similar to the Campbell review in terms of standards.
At today’s prices, it is difficult to justify purchasing shares in any of the banks. Instead, are you interested in our #1 dividend-paying stock? Discover The Motley Fool’s favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of “The Motley Fool’s Top Dividend Stock for 2013-2014.”
- ASX to soar after US says no to tapering
- Banks being kept under a watchful eye
- Top economists say rein in bank lending to avoid bubble
- Are ‘defensive’ stocks the best place for your money?
Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned in this article.
This Tiny ASX Stock Could Be the Next Afterpay
One little-known Australian IPO has doubled in value since January, and renowned Australian Moonshot stock picker Anirban Mahanti sees a potential millionaire-maker in waiting...
Because 'Doc' Mahanti believes this fast-growing company has all the hallmarks of genuine Moonshot potential, forget 'buy now pay later', this stock could be the next hot stock on the ASX.
Doc and his team have published a detailed report on this tiny ASX stock. Find out how you can access what could be the NEXT Afterpay today!
Returns as of 6th October 2020
- Coronavirus (COVID-19): 6 charts every Australian needs to see – April 6, 2020 1:46pm
- Innovation through crisis – April 2, 2020 11:48am
- Coronavirus (Covid-19): Why Is Italy’s Fatality Rate So Bad? – March 26, 2020 3:39pm