Comyn said on Tuesday that competition had moved in cycles in the past,and the bank was prepared to make changes in how it competed with rivals.
“We will try to strike the right balance,” Comyn said. “Obviously,we’re very focused on our existing customer base,and we want to make sure that we’re competitive in[the] market,we have to be.”
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CBA’s move to rein in cashbacks,which was first reported in theAustralian Financial Review,comes after Westpac chief Peter King and National Australia Bank Ross McEwan both said in the past week their banks were prepared to grow more slowly in mortgages to preserve returns.
CBA and its rivals also cut their interest rate discounts on no-frills home loans in March,and Comyn said in February that banks were writing loans at below their cost of capital.
Comyn said the fierce competition in home loans had dampened the impact of rising interest rates on customers,but over the past two decades,competition had often broken out in certain products before the market returned to a long-term equilibrium.