Skip to content
Banking, Finance Investment

ANZ-Suncorp merger deal: little banks have a big role to play in creating a fair market

RMIT University 2 mins read

A banking and finance expert says the Australian Competition and Consumer Commission’s decision to reject the ANZ-Suncorp merger deal is crucial for competition.  

Dr Angel Zhong, Associate Professor of Finance, RMIT  

Topics: banking, monopoly, merger, ACCC, ANZ, Suncorp 

The competition watchdog the Australian Competition and Consumer Commission (ACCC) has rejected the ANZ-Suncorp merger deal. The $4.9 billion deal could have been one of largest deals in Australian banking history. 

"The ACCC blocked the deal as it substantially lessens competition in the Australian banking industry, which is not in the public’s interest. 

Australia has one of the world’s most concentrated banking sectors, with its four biggest banks – Commonwealth Bank, National Australia Bank, Westpac and ANZ – holding more than about three-quarters of the market. 

It will become even more concentrated if the deal goes ahead. Suncorp is the second largest of Australia’s four major regional banks. 

“Smaller banks in Australia will find it harder to compete in the already highly concentrated market, with the big banks becoming even bigger. 

In the Productivity Commission’s recent inquiry into Australian banking business, it found that Australia’s major banks had charged prices above competitive levels, offered inferior quality products, and had acted to inhibit the expansion of smaller competitors. 

“The lack of competition has exacerbated the pain felt by Australian households in the rapidly rising interest rate environment, where many are struggling with hikes in mortgage repayments. This relates to the heart of the issue, which is a cosy banking oligopoly. 

Keeping smaller banks in the market is crucial from a competition perspective as they introduce diversity and promote innovation, driving larger banks to improve their offerings and services.  

Smaller banks also create more options for consumers, leading to better pricing, enhanced customer service, and increased overall market efficiency. 

Dr Angel Zhong is a finance academic who specialises in empirical asset pricing, digital finance, global financial markets, investor behaviour and the recent trends in retail investing. 

Contact details:

Interviews: Dr Angel Zhong, 0433 810 413 or 

General media enquiries: RMIT Communications, 0439 704 077 or 

More from this category

  • Business Company News, Finance Investment
  • 17/07/2024
  • 12:36
Mackay Goodwin

Business confidence shows marginal increase for July – Report: Mackay Goodwin Business Strength and Solvency Index (BSSI)

MEDIA RELEASE For Immediate Release Business confidence shows marginal increase for July – Report: Mackay Goodwin Business Strength and Solvency Index (BSSI) Sydney, 17…

  • Contains:
  • Finance Investment
  • 16/07/2024
  • 23:11
BTCC Exchange

BTCC Exchange Partners with CoinsDo to Elevate Cryptocurrency Security and Efficiency

VILNIUS, Lithuania, July 16, 2024 (GLOBE NEWSWIRE) -- BTCC, a global cryptocurrency exchange focusing heavily on security, is proud to announce a strategic partnership with CoinsDo, a leading non-custodial digital asset custody solution provider. This collaboration underscores BTCC's commitment to security and innovation, aiming to enhance the trading experience for its global user base.Since its inception in 2011, BTCC Exchange has been at the forefront of the cryptocurrency trading industry, known for its secure trading environment and comprehensive range of services. Supporting over 300 major cryptocurrencies and offering up to 225x leverage on USDT perpetual futures, BTCC ensures top-tier liquidity…

  • Finance Investment, Property Real Estate
  • 16/07/2024
  • 10:05
MyBrix Pty Ltd

Buy property with a little help from your friends (and family)

Sydney, Australia, 16 July 2024: For first-time homebuyers, the dream of owning a property can often seem out of reach due to soaring property…

  • Contains:

Media Outreach made fast, easy, simple.

Feature your press release on Medianet's News Hub every time you distribute with Medianet. Pay per release or save with a subscription.