There are more than a billion dollars in commissions that the banks paid to mortgage brokers that will now be able to be retained by the banks.
And the biggest irony is that the increased regulatory oversight, as recommended by the Royal Commission, is a very good thing on a number of levels; not only does it provide better protection and better service levels for the clients of financial institutions, but the raised bar in terms of servicing standards, compliance, and other increased regulatory requirements presents increased barriers to entry to the industry.
Incumbent major banks, who will obviously adopt the new, more stringent regime, will end up being more defensive, with deeper and wider commercial moats.
And therefore, more valuable businesses.
The major banks are big winners out of the RC.
Who would have thunk it, huh?
.
WBC Price at posting:
$26.64 Sentiment: Hold 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)