NAB, ANZ and Westpac accused of ‘predatory’ regional play
Small rivals fear they will be squeezed out of regional markets by the same big institutions which have abandoned them.
Having shuttered branches in rural and regional areas, National Australia Bank, ANZ, Westpac and the Bank of Queensland are now threatening the viability of the banks left standing, small lenders claim.
In a submission to the Australian Competition and Consumer Commission (ACCC), which is deliberating whether to authorise an industry trial of 20 fee-free ATMs outside of Australia’s cities, the Regional Banking Investment Alliance (RBIA) has voiced its opposition, claiming it would undermine small bank economics.
“This is, in competitive terms, a form of predatory pricing made possible by the collective financial capacity of Australia’s largest banks, authorised and coordinated under the imprimatur of the industry’s peak body,” the RBIA said.
“A smaller ADI [authorised deposit-taking institution] cannot rationally respond.”
Coordinated by the Australian Banking Association (ABA), the initiative has exposed divisions within the industry, with the Commonwealth Bank and Macquarie declining to sign on to the proposal.
