Companies

Sep 3, 2014

Big banks in collusion, says former big bank director

A former chairman of Woolworths and director of ANZ has unleashed an unprecedented spray against the big four banks -- and against the big two supermarkets.

Paddy Manning

Crikey business editor

It would be no surprise to hear the big four banks and two big supermarkets have too much market power in Australia. But it is rare to hear that same line coming from a former chairman of Woolworths and director, for two decades, of ANZ.

7 comments

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7 thoughts on “Big banks in collusion, says former big bank director

  1. Joe Magill

    Who would have thought that banks “compete to minimise risk”? There is a close correlation between Australia’s poor innovation and commercialisation performance and banks’ unwillingness to lend to small business, particularly manufacturing, unless the loans are underpinned by real estate security. I approached Westpac for a business faciltiy to replace CBA. Without looking at the business, the banker asked what real estate security was on offer. None was so the interview was terminated. When I asked CBA I was told that only loans to finance franchise purchases would be considered. Finance for small business??? You gotta be joking.

  2. SusieQ

    Terrific article.
    I refuse to bank with the ‘big 4’ and have been with a Credit Union for years.

  3. Yclept

    As if David Murray will do anything with the report. He worked hard to ensure this sort of rubbish was enshrined.

  4. graybul

    Yesterday, heard from well resourced family member of Local Bank policy change: “Face to face meetings with Manager no longer available. All enquiries to be by SMS or On-line”.

    The only sane transaction with a Big Four Bank (normally confined to Clients fortunate enough to hold surplus monies) is a shareholding!!

  5. Daemon

    Thankfully, we still have a bit of choice, and taking our money and cards out of the big 4 and going to the BoQ’s of the world may well help the big 4 see that at the end of the day we still exercise our rights to choose, but in fact the Australian consumer is still too damn stupid to think about much at all… political parties, why they vote, how they spend their grocery/fuel dollar and so on.

    They appear to dislike change, and tend to manage change by sticking their collective, unthinking heads up their arses, and then get treated exactly as they deserve.

  6. Graham R

    Hardly surprsing, considering that the major shareholders in all four Australian banks are the same four American banks.

    Why would you compete against yourself?

    The Australian banking system, the world’s most profitable, is a cartel. I can hardly believe it is legal.

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