Hard cash: Cuts to the cash rate have caused subdivision revenue to contract

The Finance market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.


Industry Analysis & Industry Trends

The Finance subdivision has operated in a challenging trading environment over the past five years, with a falling cash rate and declining private capital expenditure weighing on performance. Although residential property prices have increased over the period, other segments of the economy have lagged behind, leading to historic lows in the cash rate. The Reserve Bank of Australia (RBA) has been hesitant to raise the cash rate given Australia's two-speed economy. The cash rate was last increased in November 2010 and has declined consistently since then. This decline has contributed to falling subdivision revenue, as interest revenue derived from the loan portfolios of lenders has fallen...

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Industry Report - Industry Analysis Chapter

Given Australia’s small population compared with other developed nations, the Finance subdivision is significant to the economy as institutions within the subdivision control a vast value of assets. Ongoing macro-economic and geopolitical shocks have sent waves through the weakened financial system and have plagued global financial markets with uncertainty. The European sovereign debt crisis, the US economy’s slow recovery and concerns about Chinese economic sustainability have all affected Australia’s economic recovery over the past five years. Closer to home, volatile business confidence and declining private capital expenditure have led to lower demand for credit, which has put further pressure on subdivision revenue. The..

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Industry Products

What is the Finance Industry?

The Finance subdivision covers firms providing financial services (excluding insurance and superannuation) in Australia. The most significant industries within the Finance subdivision are domestic banks, foreign banks, building societies and credit unions.

Industry Products
Home loans
Business loans
Consumer credit
Industry Activities
Building society operation
Financial asset investment service provision
Credit union operation
Banking service provision
Money market dealing
Non-depository financing

Table of Contents

About this Industry

Industry Definition
Main Activities
Similar Industries
Additional Resources

Industry at a Glance

Industry Performance

Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle

Products & Markets

Supply Chain
Products & Services
Demand Determinants
Major Markets
International Trade
Business Locations

Competitive Landscape

Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
industry Globalisation

Major Companies

Operating Conditions

Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance

Key Statistics

Industry Data
Annual Change
Key Ratios

Jargon & Glossary

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