What effect will bank mergers have on borrowers?
Michael Veitch – Senior Analyst August 2008 For those who keep up to date with the press, you would all be aware of the proposed merger between Westpac and St George banks. There has also been a lot of speculation as to whether or not Bankwest is for sale, and if so, who will buy it. The same degree of speculation is around as to possible carve ups on Suncorp Metway’s banking and insurance business’s. To borrowers, these takeovers or possible takeovers will have the potential to significantly change the lending environment, as in the last 3 years, both St George and Bankwest have sought to aggressively grow market share of commercial property lending. Whilst Westpac has promised to retain the St George brand, this was the same promise made when they took over Challenge Bank (WA) and Bank of Melbourne (VIC) – both brands no longer exist! Clients who were operating in the 1980’s will also remember the effects of when Westpac assumed 100% ownership of AGC. We could spend a lot of time spe
