Westpac predicts tough time for Australian banks

Press, 15 August 1984, Page 39

Westpac predicts tough time for Australian banks

NZPA-AAP Sydney Westpac Banking Corporation has predicted international banking activities by Australian banks would be seriously eroded by the entry of foreign banks into Australia unless the Federal Government demanded reciprocal licences for Australian banks. Westpac’s corporate and international chief general manager, Mr Stuart Fowler, said the Australian banks were most vulnerable in the Asian region where they were poorly represented in spite of countries in the region being among Australia’s major trading part-

nets. “Most major international banks have strong representation in Asia and if they receive licences to operate in Australia they will be in a good position to take away a lot of our trade related business,” Mr Fowler said. “Because competition will be fierce we want full reciprocity so we can operate in their countries ana offer the same services to exporters.” Speaking at a meeting of Australian and Malaysian businessmen in Sydney, Mr Fowler said the Federal Government should adopt a

“corporate Australia” approach in its dealings with other countries on trade related matters. “For too long we have given things away without asking for something in return,” Mr Fowler said. “Reciprocal agreements can be of great benefit to Australia, particularly if they relate to the growth of the service sector where the jobs of the future will be created.” Westpac was keen to establish a full branch in South Korea because of the growing trade links between 1 that country and Australia, he said. “Korea is emerging as one of Australia’s most im-_ portant trading partners and we would like to be in a position where we can fully service that market.”

Other countries where Westpac would like to establish branches included Taiwan, Malaysia, Indonesia and Japan, Mr Fowler said.

Westpac was not planning to purchase a foreign bank to expand representation overseas but would continue to advocate full reciprocity as an essential ingredient in the granting of Australian banking licences to foreign banks.

“We continue to support the entry of foreign banks provided there is reciprocity. We believe they should be 100 per cent owned so they can operate as full branches rather than as subsidiaries,” he said.