Nick Garlaounis 1Bank Buying Spree - NAB - CBA
October 22nd 2008 00:20
What will happen to the non bank lenders over the coming months and years? In my view they will be swallowed up by the big 4 as hard times hit. Only those banking institutions which have the surplus cashflow will be able to move and we have already seen the smaller fish be gobbled up in the pond of finance.
CBA has already bought out BankWest so it can increase it's retail footprint and branch outlets, the CBA also now has a stake in Aussie Home Loans. Westpac took over RAMS onle months ago and the NAB is now negotiating with Mark Bouris of Wizard Home Loans for the purchase of the retail outlets and potential to even purchase the trail book which is estimated to be worht in excess of 12bn dollars.
My question is, what will happen to competition as the big 4 continue their corporate buyouts of non bank lenders? What will happen is that the banking market will be returned to the bad old days where competition and the marketplace was dictated to by these organisations.
This could mean that lending paramaters will change along with complete control of itnerest rates and bank fees and charges. Is this a good thing? No, an industry with limited competition is stifled and controlled by the monopolitstic few who have absolute control.
I don't like that way this industry is heading and even though it is touted that these purchases are simply to increase the footprint of the acquirer I believe there is much more to it than that.
Kepp your eyes on this space and makr my words, there will be dramatic changes afoot with everything to do with banking in Australia.
CBA has already bought out BankWest so it can increase it's retail footprint and branch outlets, the CBA also now has a stake in Aussie Home Loans. Westpac took over RAMS onle months ago and the NAB is now negotiating with Mark Bouris of Wizard Home Loans for the purchase of the retail outlets and potential to even purchase the trail book which is estimated to be worht in excess of 12bn dollars.
My question is, what will happen to competition as the big 4 continue their corporate buyouts of non bank lenders? What will happen is that the banking market will be returned to the bad old days where competition and the marketplace was dictated to by these organisations.
This could mean that lending paramaters will change along with complete control of itnerest rates and bank fees and charges. Is this a good thing? No, an industry with limited competition is stifled and controlled by the monopolitstic few who have absolute control.
I don't like that way this industry is heading and even though it is touted that these purchases are simply to increase the footprint of the acquirer I believe there is much more to it than that.
Kepp your eyes on this space and makr my words, there will be dramatic changes afoot with everything to do with banking in Australia.
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