2 December 2010
“Moreover, it shouldn’t be just a temporary decision – it has to be a permanent system ensuring there’s necessary funding for all lenders”.
Australian Chamber of Commerce and Industry (ACCI) also believe it’s important to consider initiatives that would aid the development of a fifth major bank.
The deal is that two years ago, when the global financial crisis threatened all the lenders, the government approved the merger of the Westpac and St George banks.
“It looks like today the government should avoid decisions concerning any significant future merger or acquisition”, – ACCI said.
The employer group, representing 350,000 firms, also calls on the government to consider the possibility of a temporary small business loan guarantee scheme. For example, it works in the US, UK and Canada.
In the end, competition between banks, lenders and other players on a Canadian mortgage market leads to better products and rates for the consumers.