The Australian Competition and Consumer Commission (ACCC) has published an issues paper which seeks submissions on areas that the ACCC will consider in its retail deposits inquiry, including how authorised deposit-taking institutions (ADIs) set their interest rates.
The ACCC will be considering how ADIs have adjusted their rates for deposit accounts following changes to the cash rate target, including the use of introductory and other conditional interest rate offers.
The Inquiry will also examine how interest rates of similar products vary between consumers depending on the amounts deposited, whether they are new or existing customers, whether they hold other products with the same ADI or if they belong to a particular demographic.
Key issues the ACCC is seeking feedback on include:
- how ADIs set their rates on retail deposit products
- how their approaches differ from rate setting for credit products, such as home loans
- the role of deposits in their overall funding mix
- consumer information and switching.
The inquiry will also be considering how banks and other financial institutions compete with each other, and the potential for entry by new competitors.
In conducting this inquiry, the ACCC will consult closely with financial regulators, including the Reserve Bank of Australia, the Australian Prudential Regulation Authority and the Australian Securities and Investments Commission.
On 14 February 2023, the Treasurer directed the ACCC to undertake an inquiry into the supply of retail deposit products in Australia.
The ACCC is due to submit a report to the Treasurer by 1 December 2023.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
