The difference between Australian major bank margins and those of regional banks is in the main due to:

Question

Quizplus · Accepted Answer

The difference between Australian major bank margins and those of regional banks is mainly due to the advantage of the major banks in the funding market, which enables them to raise funds more easily and cheaply, and to a lesser extent their asset mix. The regional banks have less access to funding and therefore are not able to compete on margins. The flexibility of the regional banks and the ability to issue covered bonds are less significant factors.

The Difference Between Australian Major Bank Margins and Those of Regional