Treasury Secretary Ken Henry has said that competition in the banking sector is back. The competition among banks became almost negligible during the global financial crisis.

He also said that the data released by the Australian Bureau of Statistics has shown that the five biggest banks have managed to capture the home-loan market.

Dr. Henry was talking to media during the sidelines of a conference held in Canberra.

He said that the five main banks have increased their market share in the home-loan segment from 60 per cent in 2007 to about 82 per cent this year.

This is an indication of what has happened with the banks. There has been consolidation is the sector and also in the market shares. While some have exited, the others have managed to scale-up their operations with use of various techniques.

Besides, the growing pressure from the foreign banks and also the increase in the number of mergers and acquisitions has reduced the players.

He also said that the Treasury will be closely monitoring the recovery in the sector. However, going back to the same level as it was pre-recession would not be possible.