Call to end the four pillars policy in Australia

by Richard Kilner

Story link: Call to end the four pillars policy in Australia

Mike Smith, ANZ’s chief executive, has called for the demise of the Australian four pillars banking policy, to enable the country’s banking sector to compete with Asian banks.

The policy prevents the largest banks from merging and has, in Smith’s opinion, led to an inward looking culture. He believes that the banks will become marginalised as Asian competition expand into Australia.

Smith went on to say that a more outward approach would create a more formidable banking environment for when the Asian regional banks move onto Australian soil.

Previously Smith led HSBC’s Asian operations, and was pleased to see Rudd’s recent election victory as it presents an opportunity to do away with the four pillars policy and permit banks to form so-called super regionals.

If New Zealand and Australia are to become real players on the world stage, the time is now for reform, he said.