The committee did note that Australia was at the higher end of the range. This appears to be at odds with an initial reading of the RBA study which suggested that Australian banks derive a smaller than average share of their income from fees and charges than do banks in other countries. The committee will also pursue this matter. The committee is not convinced that current margins reflect a truly competitive banking environment. Unlike the Reserve Bank, the committee is not presently convinced that margins in Australia are in fact mid-field.
Evidence suggests that there is scope for a reduction in margins.
In the time remaining to me, I will touch on a couple of the other issues examined in this review. The committee was pleased to see that the Council of Financial Supervisors is now established and operating effectively. The council has an important role, given the increasing significance that financial conglomerates are assuming in Australia's financial system. The committee will continue to monitor developments in this area. The committee also continues to have a strong interest in consumer protection.