National

Competition watchdog to investigate banks

By AAP Newswire

COMPETITION WATCHDOG TO INVESTIGATE BANKING SECTOR:

* Investigate prices charged for residential mortgages across entire market, including by major banks, smaller banks, and non-bank lenders;

* Consider how banks make pricing decisions, including passing on movements in the official cash rate;

* Examine differences in prices paid by new and existing customers;

* Examine differences between reference interest rates published by suppliers and interest rates paid by customers; and

* Investigate barriers that may prevent consumers from switching lenders.