The ACCC has suggested a merger between Suncorp and Bendigo would be a much better option.
👉 Background: Last year, ANZ Bank announced it will acquire Suncorp $4.9 billion, but this was knocked back by the ACCC because it would make the banking sector less competitive.
👉 What happened: Now, the ACCC has suggested a merger between Suncorp and Bendigo would be a much better option. The ACCC believes this new marriage would create a more competitive environment in home lending, which is dominated by the big four banks.
👉 What else: This is music to Bendigo’s ears who had made many attempts to acquire Suncorp in the past.
💡Fierce competition is the cornerstone of affordable home ownership. In a competitive market, banks are incentivised to offer better interest rates, cash backs and better customer service.
💡In Australia, the big four banks have provided more than 75% of all home loans—and those home loans make up more than 90% of the total amount lent. So right now, there isn't much room for competition.
💡The ACCC is now looking at ways to get banks to compete with the Big 4, like Macquarie has. And, they reckon that a Bendigo-Suncorp merger could be just what the doctor ordered.
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