Do you agree with Bendigo and Adelaide Bank chairman Robert Johanson that the Big Four are too powerful?
Johanson reckons their market strength must be addressed to ensure Australian financial institutions retain their integrity and competitiveness.
The recent decline of the foreign banking sector in Australia has given the Big Four too much control over the financial system, Johanson told The Australian Financial Review.
“As a matter of social policy, it is essential that we don’t end up with just four homogenous oligopolies – you want to have a dynamic financial system,” he adds.
Are the big banks really as similar and anti-competitive as Johanson suggests? They compete well against each other, don’t they? And isn’t their strength the main reason that Australia is dealing with the financial crisis better than many other countries?
Is Johanson suffering from sour grapes, or is he raising important social/financial concerns? Let us know below.