April, 24, 2010

The move by the Australian Competition & Consumer Commission is expected to have widespread ramifications for the boards of the Australian banks, which are each examining the impact the decision will have on their domestic expansion plans.NAB is not walking away just yet, though, and plans to offer concessions to the ACCC in an attempt to have the competition regulator reverse its initial ruling.However, the ACCC decision is expected to have ramifications not just for NAB, but for its three larger rivals.

After the Westpac acquisition of St George nearly two years ago, and the move by the Commonwealth Bank to swallow Bankwest at the height of the global financial crisis, the financial sector landscape in Australia is already consolidated. The problem for the banks now -- if the ACCC decision on NAB is a benchmark -- is the near certainty that any move to purchase major assets in Australia would be knocked back.

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