Overview

Can't bank on it: Stringent regulations can temper revenue growth over the next five years

IBISWorld’s National and Regional Commercial Banks market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • The industry's overall profitability remained robust compared with losses in other markets
  • Regional banks have used government assistance schemes to bolster their balance sheets
  • Industry revenue is projected to grow due to the reduced likelihood of further monetary easing

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    Industry Analysis & Industry Trends

    The Australian banking system has remained solid during a time when other global banks and financial markets have stumbled. However, low interest rates have been pressuring growth, as the consistent cash rate declines since November 2011 have driven industry revenue down. Consequently, industry revenue is expected to decline at an annualised 1.3% over the five years through 2016-17, to $159.7 billion. Despite several cuts to the cash rate over the past two years, the major banks have increased their interest rates on various mortgage and business lending products due to higher capital adequacy requirements. These higher requirements are expected to support a 0.3% rise in industry revenue over the current year, despite further anticipated cuts in the cash rate...

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    Industry Report - Starting a New Business Chapter

    The National and Regional Commercial Banks industry is characterised by a high level of barriers to entry. However, barriers can vary significantly across market segments. For example, it is a lot easier for an established building society or credit union to enter the industry rather than for a new bank to be started from the ground up. This has been demonstrated by several reclassifications over the past five years, such as Greater Bank, IMB Bank, Qudos Bank. In general, barriers to entry are declining due to several factors, including regulation and technology.

    The Finance subdivision has faced a breakdown of regulatory barriers following the introduction of the Wallis Inquiry's recommendations into the financial system in 2003. Fin..

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    Additional Insights for the National and Regional Commercial Banks Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the National and Regional Commercial Banks Industry are

  • Superior financial and debt management
  • Membership of joint marketing/distribution operations
  • Willingness to outsource when appropriate
  • IBISWorld analysts also discuss how external factors such as Cash rate and Number of housing transfers in the National and Regional Commercial Banks industry impact industry performance..

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    New Zealand Special Report

    Industry Products

    What is the National and Regional Commercial Banks Industry?

    Industry enterprises are Australian-owned and -operated banks engaged in banking activities. National and regional banks generate revenue through investments, interest income on loans, advances, fees and commission income.

    Industry Products
    Home loans
    Business loans
    Personal lending
    Bank accounts and transactions
    Industry Activities
    Development bank operations
    Savings bank operations
    Trading bank operations

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Cash rate
  • Number of housing transfers
  • Residential property yields
  • Ratio of interest payments to disposable income
  • Total capital expenditure

  • Current Performance
  • Chart: Revenue Growth

  • Industry Outlook
  • Table: National and Regional Commercial Banks Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - National and Regional Commercial Banks Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Mining
  • Construction
  • Wholesale Trade
  • Finance
  • Professional Services
  • Integrated Logistics

  • Key Selling Industries
  • Accounting Services
  • Consumers
  • Finance
  • Legal Services

  • Products & Services
  • Home loans
  • Business loans
  • Personal lending
  • Bank accounts and transactions
  • Chart: National and Regional Commercial Banks Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households
  • Corporations
  • Government
  • Non-for profit organisations
  • Chart: Major Market Segmentation for the National and Regional Commercial Banks Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs National and Regional Commercial Banks

  • Basis of Competition
  • Retail and commercial banking
  • Corporate and institutional banking

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the National and Regional Commercial Banks Industry

  • Industry Globalization
    Major Companies
    Commonwealth Bank of AustraliaWestpac Banking CorporationAustralia and New Zealand Banking Group LimitedNational Australia Bank Limited
  • Table: Commonwealth Bank of Australia - financial performance
  • Table: Westpac Banking Corporation - financial performance
  • Table: Australia and New Zealand Banking Group Limited - financial performance
  • Table: National Australia Bank Limited - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the National and Regional Commercial Banks Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the National and Regional Commercial Banks Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Big Four
  • The four largest domestic banks in Australia (Commonwealth Bank of Australia, Westpac Banking Corporation, National Australia Bank and ANZ).
  • Cash Rate
  • The rate that banks lend funds to one another overnight. It is set by the Reserve Bank of Australia.
  • Four Pillars Policy
  • A legislative policy of the Federal Government that ensures the four major banks operate separately by prohibiting any mergers and acquisitions among them.
  • Loan Loss Provision
  • The expense a bank incurs, which is equal to the amount of funds it sets aside for bad loans.
  • Net Interest Margin
  • The difference between the interest rate a bank charges on loans issued, and that paid to customers depositing funds with the bank.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on National and Regional Commercial Banks:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The National and Regional Commercial Banks market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on National and Regional Commercial Banks, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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