19 Dec 2011

Risk of more finance firm collapses - KPMG

9:57 am on 19 December 2011

The head of KPMG's financial services says there's a risk that more finance companies will collapse if the eurozone crisis worsens.

KPMG's Financial Institution Performance Survey for 2011 shows that three finance companies failed or shut down in the last 12 months.

But the survey shows that overall profitability in the sector has risen by nearly $50 million to nearly $200 million this year.

KPMG's John Kensington says the survivors are strong and stable with solid reputations, though he cannot rule out more failures.