GFC isn’t done yet, say bankers

By |

The Australian Bankers' Association (ABA) claims the economy is still suffering effects from the GFC. 

The ABA made the assertions yesterday in its evidence to the Senate Economics References Committee’s Inquiry in Canberra, which is investigating the effects of the crisis. 

Steven Münchenberg, chief executive of ABA, said banks had a harder time accessing funds, which impacted on their ability to supply credit to Australian households. 

He did acknowledge the impact on Australia was far less severe than on overseas markets. 

"At no point during or after the GFC has the Australian Government or taxpayers had to bail out banks, which is in stark contrast to the way banks have operated and been regulated overseas,” he said. 

On the subject of competition, he admitted the tougher conditions benefitted major banks, who had the stamina, reach and resources necessary to withstand any blows. 

“Any changes in market share have come about from economic and market circumstances, and not from a shift in the balance of market power, and certainly not from harmful practices." 

"In some cases, had a larger player or players not stepped in, we may have seen significant market failures, a loss of confidence in the Australian market and less credit available to households and businesses.”

Can you afford to buy in this suburb? Find out how much you can borrow

Top Suburbs : north lambton , menai , alexandra hills , torrensville , bendigo

go back

Get help financing your investment

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here