Federal finance minister Lindsay Tanner is calling for an inquiry into the financial system after figures revealed Australia’s banks are accounting for almost $90 of each $100 lent.
According to The Age, Mr Tanner, who yesterday addressed international regulators in Sydney, said the pace of financial innovation had now "outstripped the capacity" of regulators to keep up.
The market-share figures for May showed the share of new loans issued by building societies, credit unions, wholesale lenders and finance companies fell to a record low 10.6 per cent, down from 15 per cent a year ago. The banks' share was 89.4 per cent, up from 85 per cent.
The banks' share of new mortgages climbed from 90 to 92 per cent.