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Yellow Brick Road’s Mark Bouris has once again claimed that the Japanese banks are preparing an assault on the Australian mortgage market.
Speaking to The Daily Telegraph, Mr Bouris said Japanese banks have the potential to snatch market share away from Australia’s lenders “quite quickly” and could potentially take “5 to 10 per cent of the market”.
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According to Mr Bouris, 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 on Australian shores.
But while Mr Bouris is bullish about what the Japanese banks can achieve in the Australian mortgage market, RESI’s Lisa Montgomery is not convinced.
Speaking to The Adviser, Ms Montgomery said the cost of funds in the capital markets would prevent foreign banks from being competitive in the Australian mortgage market.
"I think there has been a lot of discussion about international banks coming to our shore and providing money to the market. I don't think they would have too much of an impact on competition, because the cost of funds in the capital markets isn't going to change in the short term," Ms Montgomery said.
"If there is an opportunity for offshore banks to bring cheaper funds to our market, they would have to do it through existing channels, channels that already have distribution and a brand in the marketplace and I don't expect this to happen."
