UPDATE: ANZ CEO Plans To Bulk Up Bank's Domestic Operations
05 August 2009 - 2:40PM
Dow Jones News
Australia and New Zealand Banking Group Ltd. (ANZ.AU) Chief
Executive Mike Smith Wednesday said he plans to bulk up the bank's
domestic operations, a move that could include an offer for
regional bank Suncorp-Metway Ltd. (SUN.AU).
The chief executive said the bank's current domestic market
share of 16% is not enough, and he criticized the government's four
pillars banking policy, and competition authorities preempting
possible mergers.
The four pillars policy bans any of the country's four major
banks from merging with each other.
Asked if the Australian Competition and Consumer Commission
policy on banking mergers would prevent ANZ making an offer for
regional bank Suncorp-Metway, Smith said that it would not.
"It takes two to dance and you've got to be willing partners,"
he said at a business luncheon. "We have to wait and see what
happens."
"There are other opportunities and I would very much like to
build the business."
He said that Australia's four pillars banking policy has
restricted the development of domestic banking infrastructure.
"The actual investment in infrastructure has not been at a
global pace."
On interest rates, Smith said that the Reserve Bank of Australia
should not be "mucking around" with the official cash rate, as the
cost of borrowing will lead to a natural adjustment of mortgage
rates and inflation can be contained.
Although Australia will likely be the first country to emerge
from the global downturn, Smith said the recovery will be long and
gradual, rather than V shaped, although he added he does not see
risk of another systemic crisis emerging.
He said that Europe has yet to see a trough in its downturn,
while the U.S. is "talking itself up", with little to show for
it.
"Asia, meanwhile, is moving well."
Smith said the next chief executive of ANZ will be likely chosen
from within the bank.
"It's incumbent on me to have a choice of successors within the
ranks."
-By Enda Curran, Dow Jones Newswires;
61-2-8272-4687; enda.curran@dowjones.com
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