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Australia: New law will stifle bank competition

By  |  October 2, 2016

Changes to competition law being introduced by the Turnbull government will crimp the development of new products and services by banks is the opinion of one expert.

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    Rather than driving greater competition, the “effects test” will discourage innovation and lead to homogenous product offerings that carry no risk of falling foul of misuse-of-market-power laws, according to University of NSW business school lecturer Rob Nicholls.

    Dr Nicholls was the chief investigator for a probe into financial services competition by the Centre for International Finance and Regulation, a project spurred by the Financial System Inquiry and Harper competition review.

    His comments come ahead of the appearance of the chief executives of the big four bank sbefore a parliamentary inquiry. Concentration of market power will be a key theme of questioning by members of the House of Representatives standing committee on economics.

    Full Content: Australian Financial Review

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