Aussie Bank Chief Favors Big Four’ Merger to Avoid Asia-Market Irrelevance
From Staff Reports
National Australia Bank Ltd. (OTC: NABZY) has jumped back into the debate on the Australian federal government’s ban on mergers between the country’s “Big Four” banks after NAB Chief Executive John Stewart changed his stance on the highly controversial policy, which many feel will relegate Australia’s banking system to a secondary position in the fast-growing and highly competitive Asian financial markets, the Australia Herald newspaper reported.
In a speech to the Australia-Israel Chamber of Commerce in Melbourne yesterday (Tuesday), Stewart said removal of the so-called “Four Pillars” policy was necessary if Australia wants to become the financiall-services hub of the fast-growing Asian market. But that move alone won’t suffice.
"Let me make it clear, removing the four pillars policy, in itself, would not be a panacea," Stewart told the chamber audience. "But there is no place for a four pillars policy in an Australia out to maximize the potential of its financial-services industry. One or two very large Australian banks would be regionally or even globally competitive."
Without ongoing reform, Australia could become a branch economy with local operations reporting to head offices overseas, Stewart warned.
Stewart’s comments represented a surprising and strategic departure from the "neutral" view on the four pillars policy that he first articulated two years ago this month. At that time, he said it was up to the politicians to decide whether that policy should stay, or go. Stewart now says his bank is planning to sponsor forums in capital cities nationwide to show Australians how this country could position itself as the financial-services hub of all of Asia.
He denied that the bank was trying to impose its own agenda on reform of the financial services industry, but he did say that he wanted to engage political parties and other groups on the issues.
Related Articles and Links:
- Australia Herald newpaper: NAB Shakes Four Pillars With Merger Talks.
- Money Morning Report: Aussie Hedge Fund Says it Benefitted From Exposure to U.S. Subprime Mortgages.
- Money Morning Report: Beware of the ‘Tipping Point.’
- Money Morning Report: Central Banks Dole Out $135 Billion to Soothe Investor Confidence.
- Money Morning Investment Research Report: Fund Manager Favors BHP, Which is Striking it Big in India.
- Money Morning Report: BHP Earnings Soar 28.4 Percent.
- Money Morning Investment Research Report: Investors Will be Cleaning Up From Beijing’s Toxic Mess For Years to Come.
Peter Schiff: Why this Money Should Replace the U.S. Dollar
There’s a new universal currency, backed by solid gold. You can use it to make online purchases anywhere in the world. Converting some money to the new currency takes just 5 minutes. You can start with as little as $10… or as much as $10 million.According to CNBC star analyst and Euro Pacific Capital President Peter Schiff, this money could double the value of your savings – automatically – in just 6-9 months.
For Schiff’s full analysis and recommendations, please go here.
