TITLE: Australian Competition and Consumer Commission Concludes Retail Deposits Inquiry
BODY:
On February 14, 2023, Australia's Treasurer directed the Australian Competition and Consumer Commission (ACCC) to conduct an inquiry into the market for retail deposit products supplied by authorised deposit-taking institutions. The ACCC has now concluded this inquiry, publishing its final report on December 15, 2023, after providing it to the Treasurer on December 1, 2023.
The inquiry examined how banks set interest rates on retail deposit products, alongside related terms and conditions. The ACCC investigated multiple aspects of the retail deposits market, including the rates of interest paid on deposited amounts, supplier strategies for setting interest rates in response to Reserve Bank of Australia cash rate changes, terms and conditions applied to retail deposit products, the nature and extent of price and non-price competition among suppliers, and how retail deposit products function as a funding source for credit provision. The inquiry also considered supplier decisions regarding the terms on which retail deposit products are supplied to consumers.
The scope of the inquiry reflected concerns about competition and consumer issues affecting Australian savers. The ACCC issued an issues paper on April 21, 2023, and received submissions by July 14, 2023, before finalising its analysis. The final report represents the ACCC's comprehensive assessment of competitive dynamics, pricing practices, and consumer outcomes in Australia's retail deposits market. Stakeholders seeking further information about the inquiry outcomes or wishing to engage with the ACCC on related matters can contact the organisation via email at fscompetition@accc.gov.au or through its standard contact channels.