Smaller banks' struggles against 'big four' in focus in ANZ-Suncorp appeal
Can smaller banks effectively compete in the home loan market with Australia's big four? According to one of the most prominent smaller lenders, the answer is no.
Can smaller banks effectively compete in the home loan market with Australia's big four? According to Bendigo and Adelaide Bank, one of the most prominent smaller banks (depending upon how you define them), the answer is no.
That is, at least for the purposes of Bendigo's role in ANZ's appeal of its rejected takeover of Suncorp's banking business, which has now entered its second week.
Bendigo is the counterfactual alternative bidder for Suncorp's bank and in its only full day of submissions to the Australian Competition Tribunal, barrister Nicholas De Young KC said on behalf of Bendigo that market evidence doesn’t support the idea that smaller banks and non banks can compete effectively with the industry's four behemoths.
De Young gave examples to the court of struggling smaller banks and non bank lenders supported by an aide memoir he handed up to the three-person tribunal. The document has not been published by the court.
