Mutuals say they are ready for growth

KPMG’s Mutuals Industry Review 2014 highlighted a well-capitalised sector with growing assets and historically low delinquency rates.

COBA chief executive Mark Degotardi said KPMG made some observations on how to achieve industry growth, but those observations held few surprises.

“Our industry recognises the need to collaborate, share services and make further investments in technology and innovation,” he said.

“As a sector, we have already identified these areas as critical to our future success.”

COBA welcomed KPMG’s finding that increased concentration in financial services “is not in the best interests of maintaining a strong and diverse Australian banking industry”.

Additionally, the association has recommended to the Financial System Inquiry panel that major bank capital holdings could be increased by higher capital requirements for “systematically important” banks and through a floor on the risk weight that majors can apply to home loans.

“Fixing unfair regulatory capital settings will stimulate competition and choice for consumers while making a strong financial system even stronger,” Mr Degotardi said.