1. Political and Legal analysis There are huge amounts of regulations and laws supervising the banking system in Australia. In this paper, we focus on one important and famous regulation: ‘four pillars’ policy. Basically, the ‘four pillar’ is a specific Australian policy to maintain the separation of ‘big four’ banks including Westpac and to prevent any merge and acquisition among these four banks (1997) .In terms of the report from both TUNSTALL (2007) and The Age (2006), the main objective of the policy is to keep the competition of the banking industry. Such the policy is a threat to the Westpac because the increasing competition will lead to shrinking interest margin definitely. And the profit…show more content… a) Technological and Environmental According to report by Australia Government (2011), the new technology in banking system includes mobile banking, stored value card and ‘Touch and Go’. Based on the recently Australian Banking & Financial Technology Innovation Summit (2013), the mobile payment solution is still under the spotlight. The consumer-driven digital economy is the big motivation and opportunity for banks in Australia.
1. From the political and legal perspective, the oversea market is a huge and potential market for the Australian banks. For example, in the second largest economic entity China that has a promising market for banking industry (PWC 2012), the performance of ‘big four’ show below:
| |ANZ |Commonwealth |NAB |Westpac |
|Employee number |500 |24 |17 |47 |
|Branch number |4 |1 |1 |1 |
(Source: Foreign Bank in China, PWC 2012) As the report of PWC (2012), foreign banks have experienced the most profitable year during 2011. The data showed the profit after tax boosted from 7.78 billion in 2010 to 16.73 billion in 2011. And from the report by Deloitte (2012), the foreign banks expected more deregulation by