National Media

Poor conduct due lack of bank competition

Small banks believe a lack of competition is contributing to inappropriate conduct by bigger rivals and poor quality products for their customers.

In its submission to the Productivity Commission's inquiry into competition in the Australian financial system, the Customer Owned Banking Association says the sector does not have sustainable competition at the moment.

"A lack of competition can contribute to inappropriate conduct by firms, and insufficient choice, limited access, and poor quality products for consumers," director of policy Luke Lawler said in a statement on Tuesday.