No merging of big four banks -
02/06/08
THE Rudd Government will not allow any
of the nation's four biggest banks to merge even if
St
George is gobbled up by Westpac.
It will maintain the "four pillars'' banking
policy, no matter the outcome of a planned merger
between Westpac and St George, Federal Treasurer Wayne
Swan says.
The long-standing policy, adopted by previous Coalition
and Labor governments, does not allow mergers between
the nation's four biggest commercial banks - Commonwealth
Bank of Australia, National Australia Bank, ANZ and
Westpac.
"The strength and soundness of the Australian
banking system over the past year further demonstrates
the soundness of the four pillars policy,'' Mr Swan
said today.
"The Government considers that Australia is
best served by a stable banking system that can continue
to draw on the strength and risk management skills
of four major banks, rather than a lesser number.
"Accordingly, whatever may be the outcome of
the banking merger now under consideration, the Rudd
Government sees no case for changing the four pillars
policy which has served Australia well."
St George last week recommended to its shareholders
Westpac's $19 billion takeover after the two lenders
signed an implementation agreement.
But the agreement does not prevent St George from
considering any superior proposals that may emerge.
The proposed merger will create Australia's biggest
financial institution, eclipsing Commonwealth Bank
of Australia and National Australia Bank.
AP
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