Bank Policy for Australian Government
The Australian (Labor) government will retain its ruling of four pillars banking regulation in a bid to prevent mergers from Australia’s four biggest banks, said the Australian treasurer Wayne Swan on Monday.
The government will also establish a scheme that would give depositors of banks and insurance companies quick access to funds should a financial institution fail.
Following the recent global credit crunch and the instability in the financial markets, this would give a broader review of the health of the financial system in the country.
Swan said that, “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 smaller number”.
It comes after the announcement of one of the four major banks Westpac merged with the fifth biggest bank (St. George Bank) creating the biggest bank in Australia with a market capitalisation of $66B.
