The internationalisation of Australian banking: further moves by the ANZ

Abstract

Summary The progressive deregulation of the Australian financial system, promulgated by the Campbell Committee of Inquiry (1981), has created major pressures for structural readjustment in the Australian banking industry. Recent moves by the ANZ to take over Grindlays, the British‐based international bank, is the first significant attempt at comprehensive internationalising by an Australian bank. The takeover is analysed in terms of the model of bank internationalisation developed by Fujita and Ishigaki. Particularly attractive to the ANZ is the foreign bank representation that Grindlays possesses. This not only complements the ANZ's existing international representation, but also allows the Australian purchaser to overcome the regulatory impediments of reciprocity that have prevented Australian banks operating in many offshore locations. Disadvantages of the merger for the ANZ include exposure to Third World debt and the acquisition of branches in areas of limited interest to the Australian parent where ...