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Banks’ Wealth Management Activities in Australia

Author

Listed:
  • Theodore Golat

    (Reserve Bank of Australia)

Abstract

Wealth management activity has grown rapidly in Australia over the past 25 years and the major banks now comprise a much larger share of the industry than they did previously. The returns on these activities across the major banks have varied, being close to those on traditional banking activities in some cases but below the cost of capital in others. By undertaking this line of business, banks have increased their resilience (by diversifying their income) but also face new risks. In part reflecting these risks, as well as a greater focus on capital management, banks have begun to re-examine the nature and extent of their involvement in wealth management.

Suggested Citation

  • Theodore Golat, 2016. "Banks’ Wealth Management Activities in Australia," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 53-60, September.
    • Handle: RePEc:rba:rbabul:sep2016-07
    as

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    File URL: https://www.rba.gov.au/publications/bulletin/2016/sep/pdf/rba-bulletin-2016-09-banks-wealth-management-activities-in-australia.pdf
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    References listed on IDEAS

    as
    1. Stiroh, Kevin J, 2004. "Diversification in Banking: Is Noninterest Income the Answer?," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 36(5), pages 853-882, October.
    2. Edirisuriya, Piyadasa & Gunasekarage, Abeyratna & Dempsey, Michael, 2015. "Bank diversification, performance and stock market response: Evidence from listed public banks in South Asian countries," Journal of Asian Economics, Elsevier, vol. 41(C), pages 69-85.
    Full references (including those not matched with items on IDEAS)

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