News: Suncorp fronts Senate inquiry

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Suncorp Group Ltd (ASX:SUN) chief executive David Foster has told a Senate inquiry that less banking competition has lifted funding costs for smaller lenders.

Mr Foster said one of the key impacts was the consolidation of Bankwest and St George becoming a part of the major banks.

The chief executive added that second-tier banks were undermined by a constrained and expensive funding market.

Mr Foster claimed that before the global financial crisis costs of funds were 10 - 15 basis points greater than the major banks, now they were up to 80 basis points higher.

For the year ended 30 June 2010, Suncorp reported a net profit of $789 million.