The Commonwealth Bank has withdrawn its bid to acquire ABN Amro Australian holdings.

The bank announced to the Australian Securities Exchange today that it had withdrawn from discussions for the acquisition with Royal Bank of Scotland.

It said it had made the decision after its board assessed the current economic climate, the uncertainty in world financial markets and the risks involved in integrating the complex businesses at such a time.

“The bank believes that given these factors it would not be in the best interests of shareholders to proceed with the acquisition,” the bank’s announcement said.

Commbank’s withdrawal from the process follows the earlier withdraw of National Australia Bank.