Australia Banks
Australia banks have a worldwide reputation for providing customers with comprehensive products and services, having highly professional staff members, and being among the safest of all banks on the planet. As proof of this, during the past three years while the rest of the world has experienced devastation associated with the financial crisis, Australia banks have actually seen significant profits. Following global standards, these banks have been able to capitalize on opportunity with outstanding wealth management options and a strong retail base.
Back in 1993, the Australian government started the process of deregulating all Australia banks. Once completed, the opportunity for foreign banks to enter the country became much easier. However, after the banks were deregulated, savings banks and trading banks were locked out. Today, the banking sector within Australia is controlled and enforced by several banks to include the Westpac Banking Corporation, Australia and New Zealand Banking Group, Commonwealth Bank of Australia, and the National Australia Bank.
To ensure acquisitions and mergers between the four primary Australia banks is prevented, this country’s government uses what is referred to as a “four pillars policy.” Of course, when talking to government officials, they would say this is simply a policy and not an official regulation but banking experts feel the “policy” is proof that this country does not favor acquisitions and/or mergers. In fact, some experts feel that by having this policy in place, the country is setting itself up for economic failure.
Even though different opinions exist for the policy against acquisitions and/or mergers of the top Australia banks, these four banks rank among the top 10 in the entire world. As mentioned, many of the larger global banks were seriously challenged during the recent financial crisis while Australia banks held their own, making them the safest of all banks in existence.
Several studies of these banks revealed that for long-term credit ratings and total assets, banks from this country remained steadfast during a very difficult time. Because risk exposure was carefully controlled even before the financial crisis, industry experts also believe that this country’s economy will actually help support growth of banks. The exciting factor pertaining to Australia banks is that opportunity for growth is tremendous thanks to the development and distribution of innovative products and services.
Many Australia banks have begun to put a lot of effort into exporting expertise in the funds management realm, as well as private banking and retail banking. In other words, with banks in this country surviving the financial crisis where many other banks failed, many banking officials feel they could share their knowledge for survival with other banks to prevent this type of devastation from occurring again.
Currently, the four largest Australia banks include Bendigo and Adelaide Bank, AMP, Bank of Queensland, and Suncorp-Metway, each with a strong reputation for the value of products and services offered to private and business customers. These banks have experienced incredible growth and success but along with Australia banks, a number of non-banking financial institutions are also paving a way to success. Because of the government’s decision to deregulate banking, credit unions and building societies have been able to capture a portion of the market and actually had strong growth.