Australia’s customer owned banking sector today celebrated a historic milestone in reaching $100 billion in total assets.
The latest quarterly figures from APRA released today show a surge in home loan growth helped lift the sector to $101 billion in total assets.
“We’ve seen today through the APRA data that more and more Australian families are taking out a loan with us and achieving their dream of buying a home,” COBA CEO Mark Degotardi said.
“Reaching $100 billion in assets further underlines that the customer owned model, with its 4 million customers, is the proven alternative to the listed model in retail banking.
“Mutual banks, credit unions and building societies are delivering great service, highly competitive pricing and an unmatched customer focus.
“Customers are our owners and number one focus and unlike our listed competitors we don’t have the tension of trying to maximise returns to a separate group of shareholders.
“We can provide even more effective competition and choice in banking if we have a level playing field and a fair go from regulators.
“Our top priority is prompt implementation of the Financial System Inquiry (FSI) recommendations 1, 2 and 3 on regulatory capital. Urgent action is needed to reduce the unfair funding cost advantage that major banks enjoy due to current regulatory capital settings.
“The Government has responded positively to these recommendations because they will ‘reduce the advantages the larger banks have over their smaller counterparts, increasing competition and leading to better outcomes for consumers.’
“However, the timetable for implementing the recommendations is largely at the discretion of the Australian Prudential Regulation Authority (APRA). We need the Government to ensure that APRA gives sufficient priority to this task.”