When considering the tremendous increase in per capita wealth over the past couple of decades it is little wonder that the managers of wealth, the big banks, have done so well.
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They have been able to make the most of the deregulation of the financial system over that time without losing much market share to competitors.
Little wonder the big banks remain the mainstay of DIY super fund trustees' share portfolios.
It is not only their tax-effective dividends when compared with the low rates that can be earned on cash that make bank shares attractive. Their share-price performances have been something to behold as well.
Analysis by CommSec shows that 20 years ago the big four banks were ranked in the top 10 ASX-listed companies by market capitalisation.
They now occupy the first four places.
Twenty years ago there were three mining companies in the top 10. Now, only one miner, BHP Billiton, remains; though 20 years ago it was BHP. The merger with Billiton was in 2001.
While the average wage has more than doubled over the past 20 years, per capita wealth has more than tripled from $97,000 in 1995 to more than $340,000 now.
As CommSec points out, that is mostly due to the performances of shares and property. The median dwelling price nationally stands at almost $500,000, compared with about $130,000 in 1995.
The S&P/ASX 200 Index is now about 5500 points compared with almost 2000 points 20 years ago.
When the dividends are included, the total returns from Australian shares are much greater.
Assuming that over the past 20 years all dividends were ploughed back into the market, the investment would have grown sixfold.
I would not worry too much about the higher capital requirements that the Australian Prudential Regulation Authority is imposing on the big banks.
It is part of the crackdown by regulators worldwide after the experiences of the GFC when banks in the US and Europe were bailed out by taxpayers.
The extra capital the banks will need is huge, about $11 billion across the big four. But the banks are much bigger with combined capitalisation of about $420 billion and combined annual profits of more than $30 billion.
Among the capital management levers they could press, the banks could slow the growth of their dividends.
But it is bank customers who are likely to be making a major contribution.
That can be achieved by not passing on any future cash-rate cuts in full to mortgage holders.
And when interest rates do eventually start to rise, the banks may not pass on the higher cash rates in full to their depositors.
That is what you can get away with when you dominate an industry sector as the big banks do.
The only trouble for the banks' shareholders would occur if there was a marked slowdown in the banks' revenue growth. While there are signs credit growth is slowing, it is likely to remain at healthy levels.
