The head of the Reserve Bank says there's plenty of competition in Australia's lending market, particularly when it comes to home loans.
Glenn Stevens said competition had increased across most types of loans, particularly for mortgages and loans to big business.
Despite the RBA keeping the cash rate on hold for 18 months between August 2013 and February 2015, mortgage rates fell thanks to healthy competition, he said.
"I do not think, myself, there's any problem of no competition in the mortgage market," Mr Stevens said in his bi-annual testimony to a parliamentary committee on Friday.
"If you're worried about competition, I don't think it's worth spending any more time on mortgages."
One area that could use more competition was lending for small business, although this was a harder area, Mr Stevens said.
When asked about competition among credit card rates, Mr Stevens said Australians should not be encouraged to use credit cards, which were an expensive form of debt.
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