Date: August 24 2012
Reserve Bank chief Glenn Stevens says high profits among Australian banks are not excessive.
Addressing a House of Representatives economic committee this morning, Mr Stevens said people should not be surprised that Australian banks were doing better than others around the world.
‘‘There’s not a high bar to clear there,’’ he said. ‘‘It’s indicative of lack of competition that profits are so high.’’Banks’ growing focus on deposits as part of their funding was a factor that people often overlooked, Mr Stevens said.
‘‘People want to look at this through the prism of mortgage finance, but there are other things going on as well,’’ he said.
‘‘It’s fair to look at the provision of mortgages, but people be shouldn’t neglecting the other side of banks’ balance sheet, where most of the funding comes from.’’
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