Retail deposits inquiry 2023

On 14 February 2023, the Treasurer directed the ACCC to conduct an inquiry into the market for retail deposit products supplied by authorised deposit-taking institutions. It includes how banks set interest rates, as well as other terms and conditions.

The ACCC must provide the Treasurer with a report on the inquiry by 1 December 2023.

Scope of inquiry

The inquiry will look at matters including, but not limited to:

• the rates of interest paid on amounts deposited or held in retail deposit products
• the terms and conditions for the supply of retail deposit products to consumers
• supplier strategies in relation to retail deposit products, including supplier approaches to setting interest rates on retail deposit products
• supplier decisions relating to terms and conditions on which retail deposit products are supplied in light of changes in the Reserve Bank of Australia’s target for the cash rate
• the nature and extent of price and non-price competition in the supply of retail deposit products
• the use of retail deposit products as a source of funding for suppliers’ provision of credit.

The Ministerial direction gives further details of the matters to be considered in the inquiry.