Morgan adds more fuel to four pillars review fire
(16 November 2004 – Australia) Westpac chief executive David Morgan has upped the ante on the "Four Pillars" debate, saying the Australian federal government should take the opportunity to review the policy.
Speaking on national television on Sunday, Dr Morgan said the government had a "once in a generation opportunity" to debate the policy given its large majority in the House of Representatives and majority in the Senate.
"On the specific issue of four pillars, I absolutely believe the only rational policy is that the same competition policy should apply to banking as it dies to other sectors," he told Channel Nine.
"Of course banking is special but that is why you have a prudential policy overlying the banks…I believe there is sufficient competition in the sector…it is worth at least being asked to have a look."
Dr Morgan said he didn’t see any defensible case for keeping the banking industry "locked up".
His comments follow those of ANZ chief executive John McFarland who also said it was time to review the policy.
Speaking on the same program, National Australia Bank chief executive John Stewart said he was focussed on repairing NAB rather than deciding whether or not Australian banks should be merging.
"On the specific issue of four pillars, I absolutely believe the only rational policy is that the same competition policy should apply to banking as it dies to other sectors," he told Channel Nine.
"Of course banking is special but that is why you have a prudential policy overlying the banks…I believe there is sufficient competition in the sector…it is worth at least being asked to have a look."
Dr Morgan said he didn’t see any defensible case for keeping the banking industry "locked up".
His comments follow those of ANZ chief executive John McFarland who also said it was time to review the policy.
Speaking on the same program, National Australia Bank chief executive John Stewart said he was focussed on repairing NAB rather than deciding whether or not Australian banks should be merging.
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