Opinion
Regional banks dying a slow death
The country’s smaller banks have a bleak future due to higher cost of funds, excessive capital requirements, costly technology upgrades and lack of scale. But will regulators do anything about it?
Tony BoydContributorWhen Bank of Queensland chief executive Patrick Allaway reports a 35 to 40 per cent fall in the bank’s half-year profit this week, it will be tempting to blame it all on the strategic mistakes of former management including decades of underinvestment in technology.
But there is a bigger issue at play that deserves the attention of the federal Treasury, the Reserve Bank of Australia and the Australian Prudential Regulation Authority.
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