Big four banks not independent
New Australia Institute research has questioned the independence of Australia's big four banks and whether their large profits ultimately benefit the broader community.
The research, released today, claims that the big four banks make more than $1,460 in profit from every man, woman and child in Australia, and while some of that money flows to members of superannuation funds, most Australians get nothing.
The research, undertaken by Senior Research Fellow David Richardson, looks at the underlying ownership of the big banks and the influence major institutions exert as shareholders.
He looked at the top 20 shareholders of the big four banks and claims that the degree of common ownership seriously challenges the notion that they are independent.
"These institutions don't own a big slice of just one bank; they own a big slice of all the big banks," Richardson's analysis says.
"The last thing these common shareholders seem to want is genuine price competition and this week's interest rate decisions illustrate that.
"Australia's big four banks already make up four of the eight most profitable banks in the world," he said.
"Our analysis of the concentration of ownership raises serious concerns about the potential for them to boost profits further by acting as a monopoly.
"Australians who are worried about the cost of living should focus on the potential to make significant savings if they switched to a mutual, credit union or building society," Richardson said.
Recommended for you
The central bank has released its decision on the official cash rate following its November monetary policy meeting.
ASIC has cancelled the AFSL of a Melbourne-based managed investment scheme operator over a failure to pay industry levies and meet its statutory audit and financial reporting lodgement obligations.
Melbourne advice firm Hewison Private Wealth has marked four decades of service after making its start in 1985 as a “truly independent advice business” in a largely product-led market.
HLB Mann Judd Perth has announced its acquisition of a WA business advisory firm, growing its presence in the region, along with 10 appointments across the firm’s national network.
