Suncorp Group Ltd (ASX:SUN) chief executive David Foster has told a Senate inquiry that less banking competition has lifted funding costs for smaller lenders.
Mr Foster said one of the key impacts was the consolidation of Bankwest and St George becoming a part of the major banks.
The chief executive added that second-tier banks were undermined by a constrained and expensive funding market.
Mr Foster claimed that before the global financial crisis costs of funds were 10 - 15 basis points greater than the major banks, now they were up to 80 basis points higher.
For the year ended 30 June 2010, Suncorp reported a net profit of $789 million.
SUN Price at posting:
$8.74 Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)