Small lenders fighting majors with 'one hand tied behind our back'

by AB29 Oct 2013

A regional lender has claimed it is fighting with "one hand tied behind our back" as regulation favours bigger players.

Bendigo and Adelaide Bank managing director Mike Hirst has argued that regulation favours major lenders, and has asked the government to review big bank dominance as part of its inquiry into financial services, Fairfax has reported.

Hirst took aim at the previous government's guarantee on bank borrowing, which he said saw smaller lenders with a lower credit rating pay a higher fee. According to Fairfax, Hirst said the decision had a "major impact" on customer choice.

"What we don't have ... is an even playing field that promotes customer choice. Size is a powerful ally in any endeavour. In banking in Australia it provides larger players with funding and regulatory advantages that ultimately restrict consumer choice. That needs to be put under a microscope."

While Hirst said some government regulation of the financial system was overdue, he called aspects of regulatory change "a solution looking for a problem".


  • by SIDBROKER 29/10/2013 9:09:46 AM

    Isn`t that interesting. Brokers are trying to stay in the business with one and or two hands tied behind their back. The handicap is called NCCP. The most disgraceful peice of regulation in a so called democracy.

  • by Well.... 29/10/2013 9:14:05 AM

    Much of the regulation was put in place with consultation of the big 4. Those involved in the regulation regularly consult with the big 4 on how to implement certain items, and indeed what to implement - even placing themselves in the same building in some cases.

    Hence the reason the paperwork keeps doubling, as the big 4 try to eliminate all risk.

  • by Country Broker 29/10/2013 9:39:08 AM

    While I have issues with The Bendigo at times , The comments are spot on , the playing field is not level !!
    The big 4 have managed to influence the governments of the day for some time especially with regards to APRA regulations and compliance with the NCCP legislation.
    I am sure the big 4 and probably the regional banks would like to see brokers gone from the market place but they know it will not happen. Then they decrease commissions , BUT market forces will prevail !! They will never be able to provide the level of personal service that the Broker can, they simply do not have the systems to do it.