Australian competition regulator eyes halt on bank mergers

ACCC will likely turn down mergers of Big Four with smaller banks amid global financial crisis.

The Australian Competition and Consumer Commission (ACCC), Australia’s competition regulator says that it is increasingly unlikely for more mergers to take place within the Australian banking industry.

Graeme Samuel, ACCC chairman, says the regulator was unlikely to approve any acquisition launched by a Big Four bank for a smaller regional lender such as Bank of Queensland, Bendigo and Adelaide Bank or Suncorp Metway, as reported in Money AU.

"It would be a difficult ask to see any more of the regional banks moving into the fold of the major trading banks in light of the global financial crisis," Mr. Samuel said in a television interview.

Asked to look retrospectively at Westpac’s merger with St George, Mr. Samuel suggested he might be reluctant to approve a deal had it occurred today.