Banking in Australia
The bank sector in Australia comprises of a number of banks that have been licensed to carry on their banking business under the Banking Act 1959, wherein the foreign banks are licensed to function via a branch in Australia, and also through the Australian-integrated foreign bank auxiliaries.
The banking system is said to be liquid in nature in Australia and at the same time well developed.
Four major banks are dominating the banking sector of Australia. They are :
- Australia and New Zealand Banking Group
- Commonwealth Bank of Australia
- National Australia Bank
- Westpac Banking Corporation
The government of Australia possesses a “four pillars” policy that avoids mergers between the 4 major banks.
This is said to be a long-standing policy when compared to the formal regulation, however it replicates the broad political disapproval of bank mergers.
The big four banks of Australia are present in the top 12 banks in the world in the recent times.