FED:Swan aims to build 'fifth pillar'

AAP General News (Australia)
12-02-2010
FED:Swan aims to build 'fifth pillar'

MELBOURNE, Dec 2 AAP - Treasurer Wayne Swan has plans to offer help to building societies
and credit unions to help build a "fifth pillar" in Australia's banking industry.

Fairfax newspapers report Mr Swan hopes to challenge the big four banks by re-opening
a limited version of the government guarantee scheme for building societies and credit
unions to put competitive pressure on the big four.

The aim is to make it easier for small lenders to source money on the wholesale market
and increase their home lending market share.

The plan could also include more money for the securitisation market, where small lenders
often access funds, and expanding the use of Australia Post branches for credit union
deposits and withdrawals.

AAP jrd/jfm

KEYWORD: BANKS

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