CBA and BankWest merger gets go ahead
Federal Treasurer Wayne Swan has announced his approval of the proposed acquisition of BankWest and St Andrew’s by the Commonwealth Bank (CBA).
Swan said a comprehensive assessment of the merger’s impact on the national interest was made with conditions that support a strong and competitive Australian banking system.
He said CBA is required to maintain and grow the BankWest brand as well as provide support for staff affected by the acquisition. It is also required to maintain BankWest’s head office and core functions in Western Australia, while CBA and BankWest branches and business centres in Western Australia are not permitted to close as a consequence of the acquisition.
“Importantly, CBA is also required to remove fees for CBA customers using BankWest ATM’s and vice versa, from March 2009”.
In addition to maintaining a strong and competitive banking system and protecting the interests of customers and employees, Swan said the decision takes into account a range of other important considerations including prudential requirements, economic efficiency and community banking needs.
“The merged entity will have a larger balance sheet and a stronger capital position, as well as broader access to funding markets, leaving it better placed to withstand further challenges from the global financial crisis,” Swan said.
Recommended for you
The Australian Financial Complaints Authority has reported an 18 per cent increase in investment and advice complaints received in the financial year 2025, rebounding from the previous year’s 26 per cent dip.
As reports flow in of investors lining up to buy gold at Sydney’s ABC Bullion store this week, two financial advisers have cautioned against succumbing to the hype as gold prices hit shaky ground.
After three weeks of struggling gains, this week has marked a return to strong growth for adviser numbers, in addition to three new licensees commencing.
ASIC has banned a Melbourne-based financial adviser who gave inappropriate advice to his clients including false and misleading Statements of Advice.
