Rethinking retail deposits: The ACCC Inquiry and its potential impact

How will the ACCC Inquiry findings on retail deposit products impact the banking industry in Australia? Read about the report’s implications and the ACCC’s seven recommendations to enhance consumer outcomes and market operations.  

The Australian Competition and Consumer Commission (ACCC) recently assessed how banks determine interest rates on retail deposit products. The Inquiry examined the competitive dynamics and consumer outcomes in the supply of deposit products by authorized deposit-taking institutions (ADIs).  

Concerned about the transmission of RBA cash rate increases to savers, the report specifically examined how ADIs adjusted deposit account rates in response to changes in the cash rate target and offered seven key recommendations.  

• The retail deposit market is marked by selective and opaque competition, with limited new entrants impacting incumbent banks. While smaller players…