The Bank Merger

Grey River Argus, 22 February 1947, Page 5

The Bank Merger

BIGGER LENDING Likely in N.Z. and Australia (Rec. 10.30). LONDON, February 21. The Financial Times understands that negotiations for the merger of the Bank of Australasia and the Union Bank of Australia have been proceeding for more than 18 months. The object behind the amalgamation is to put a combined institution in a stronger position to meet a growing demand for financial accommodation, which is anticipated during the economic development of the Dominions, and to take advantage of the industrial expansion which is expected. The Financial Times, in an editorial, says: Nearly two decades have elapsed since an amalgamation between two big banking institutions. Of even greater importance, however, is the role that the combined institution will play in the economic development of Australia and New Zealand. Evidence is ample that capital is seeking an outlet there. Their executives, feeling that, as separate entities, these banks are not large enough to cope with expanding business and investment which is anticipated, have arranged a marriage on the principle that unity is strength.