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.
