Industry Analysis & Industry Trends
Like the rest of Australia's Finance subdivision, credit unions have been hurt by the global financial crisis and a slowing economy in 2008-09. Their mutual status, prudent lending and heavy reliance on deposits for funding have shielded the industry to some extent, but the past five years have been difficult nonetheless. As the Australian economy transitions from mining to non-mining sectors, the Reserve Bank of Australia has dropped interest rates to historic lows. This decimated the revenue generated from lending portfolios. Even more detrimental was the effect of credit unions leaving the industry and taking portions of revenue and asset base with them. As a result, industry revenue is forecast to decline at an annualised 8.8% over the five years through 2014-15 to reach $2.4... purchase to read more
Industry Report - Industry Key Buyers Chapter
The level of concentration in the industry is medium. IBISWorld estimates that the two largest companies share 38.3% of industry revenue, while the top four account for an estimated 47.4%. This compares with the Building Societies industry, where the top five players hold an estimated 89% of industry assets, and the National and Regional Commercial Banks industry, where the top four major banks hold 84.7% of domestic banking assets. The Credit Unions industry has, however, been undergoing consolidation for many years, and there is no sign of this process abating.
Over the past five years, several credit unions were reclassified as mutual banks and exited the industry classification, according to Australian Prudential Regulation Authority (APRA)... purchase to read more