Posted May 15, 2018 06:20:49The number of banks with more than 100,000 customers in Australia has been cut by about half from 10,000 in 2020-21 to 8,000, the Australian Financial Review has learned.
A total of $2.5 billion was axed in the banks that were cut, as well as the largest of the group that includes the big three lenders — Western Union, Australian Banking Group and ANZ.
As a result, there are now fewer than 100 banks in Australia with more that 100,00 customers, including the majority of regional banks, the banks say.
The loss of the bank numbers comes as the industry looks to diversify and as the banking industry continues to grapple with its recent crisis and the looming return of the Australian dollar.
However, the loss of revenue will hurt the industry as it has to cope with a large amount of deposits being lost, said John Griffiths, chief executive of Australian Banking Association.
The Australian Banking Federation has been working closely with the banks on a strategic review of the banking system.
The banking industry is a global industry, with about $6.5 trillion in assets, according to the latest data released by the Australian Bureau of Statistics.
The banks, which have been the main beneficiaries of the recovery, are now seeking to diversification and grow their business, Mr Griffiths said.
The banks say their losses were largely related to the impact of the Great Recession on the sector.
They also face significant capital costs as a result of the Government’s decision to remove capital gains tax for the first time in 20 years.
Banks have been struggling to make up lost revenue as the Federal Government loosens its tax rules, cutting their taxable profits by $2 billion.
But the banks argue the Federal government’s changes will be offset by tax reductions for other businesses and consumers.
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