Graph 8  Yields on the major banks' bonds have declined in response to both lower risk-free yields and a decline in the spreads of bank bonds to these reference rates. Also, banks have passed through most of the cash-rate reductions to interest rates on retail deposits, which account for about a third of their debt funding.
In addition, we have received suggestions regarding possibly broadening the measure of the degree of competition in a banking market to include the activities of Internet banks.