Integration of Financial Services: Evidence from Australia

This paper examines convergence in the Australian financial services industry. It traces the emergence of financial conglomeration in Australia from its origins in the 1950s. The institutions involved, their market shares, and their mix of financial activities are described. The causes of financial conglomeration in Australia are discussed, noting that conglomeration has occurred in two main phases in Australia. The regulatory treatment of financial conglomerates in Australia is described, including recent changes to the Australian regulatory framework following the 1997 Financial System Inquiry. The paper concludes with some speculation as to the likely future of financial conglomeration in Australia.