Australian Banks Post High Profits

On Friday, Reserve Bank of Australia governor Glenn Stevens said the high profits of Australian Banks are not excessive. Stevens stood before the economic committee of the House of Representatives.

According to Stevens, the high profits of Australian banks are because of low competition. He said he is not surprised that local banks are faring better than competitors and banks around the world.

Stevens also explained that banks are now focusing more on getting clients to deposit more money instead of getting loans. Finance and mortgage are the most popular products of many banks but he said there are other products the banks offer.

He said it’s also quite natural for the critics to look into mortgages but the reality is that people prefer looking into saving and funding.