Banks already highly competitive: Westpac

Westpac chief Brian Hartzer doesn't believe it is necessary for the competition watchdog to set up a new team to scrutinise the banks when there are other regulators doing that job.

Mr Hartzer told a House of Representatives economics committee hearing there were already endless government reviews into competition and two very active regulators, including the Australian Securities and Investment Commission, which has been given a mandate that includes looking at competition policy.

"Although there are many assertions about competition in the industry, my own personal experience is it is highly competitive," Mr Hartzer told MPs in Canberra.

"We spend all day thinking about how we compete our competitors into oblivion and avoid having the same happening to us."

The Westpac boss was the last banking chief to appear in the latest parliamentary review of the big four banks.

The committee drew up a series of recommendations after its first review last year, including allowing the Australian Competition and Consumer Commission to establish a small team to make recommendations to the treasurer every six months to improve competition in the banking sector.

The heads of Commonwealth Bank and National Australia Bank dismissed the need for additional oversight when they faced the committee earlier this week, but ANZ boss Shayne Elliott said he no objection to the ACCC involvement "whatsoever".