In a report in the Daily Telegraph today, it is alleged that Japanese banks would like to enter the Australian market and if they do could snatch $100 billion of the Australian home loans by undercutting local lenders. Local lenders have already alerted borrowers that they do not intend to pass on all the RBA rate cuts in full. Japanese lenders will be able to take over a significant number of Australian loans if they in fact pass on the rate cuts intact.
The Treasurer, Mr Swan, said that he welcomes new lenders to Australia and believes that they will aid the competition in place for home loans and will only benefit the consumer.
At least three big banks, the $62 billion Mitsubishi UFJ Financial Group, $42 billion Sumitomo Mitsui Financial Group and $35 billion Mizuho Financial Group, are said to be considering operating here, the Daily Telegraph reports.