“…They show the post-deregulation period was generally one of overall productivity improvement, with Models 1 and 1b finding productivity improvements of around 10%. Thus, the competitive impact of foreign bank entry in Australia seems to be particularly apparent in the wholesale markets, as argued by Milbourne and Cumberworth (1991). The rate of technological change was lower in the retail focussed model (Model 1a), at 8%.…”
“…They show the post-deregulation period was generally one of overall productivity improvement, with Models 1 and 1b finding productivity improvements of around 10%. Thus, the competitive impact of foreign bank entry in Australia seems to be particularly apparent in the wholesale markets, as argued by Milbourne and Cumberworth (1991). The rate of technological change was lower in the retail focussed model (Model 1a), at 8%.…”
“…This feature of the entry policy should be understood when comparing the relative effects of heightened banking competition on household users of financial services, the retail banking market, and business users comprising the corporate and wholesale markets (17). The aim was a more competitive and innovative financial services sector in order to foster real activity in the economy.…”
“…Unfortunately, since foreign bank entry in 1986 these indicators show no clear trend. However, Milbourne and Cumberworth (1990) report improving trends, as does Linklater (1989).…”
Section: Milbourne and Cumberworthmentioning
confidence: 97%
“…Third, reduced profitability in banking has not come from lower net interest returns as deregulation theory would suggest. Milbourne and Cumberworth (1990) argue that reduced profitability has stemmed primarily from higher provisions for doubtful debts and higher taxation liability. While higher bad debts can be seen as a result of deregulation, it is debatable whether this is a "desirable" result.…”
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