A Guide to Banking in Australia Today

Banking in Australia has come a long way since its early days. Australia has a highly developed banking system with a wide range of institutions to choose from.

There are four major banks in Australia: the Commonwealth Bank, Westpac, ANZ, and NAB. These banks offer a variety of services, including everyday banking, credit cards, loans, and investment products.

Australians have access to a range of banking options, including online banking, mobile banking, and branch banking. Many banks also offer 24/7 customer support.

The Reserve Bank of Australia (RBA) plays a crucial role in regulating the Australian banking system. The RBA sets interest rates and oversees the stability of the financial system.

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In Australia, you'll find different types of banks, each with its own unique characteristics.

Trading and savings banks were once separate entities, but deregulation in the 1960s removed this distinction. This allowed building societies to take deposits from the public.

The Australian banking market is notable for its concentration of large banks, with many resulting from bank acquisitions. English, Scottish and Australian Bank was acquired by the ANZ Bank in 1970.

Building societies, like NSW Building Society, have converted to banks in the past, but were required to demutualise before doing so. This included Advance Bank, St George, Suncorp, Metway Bank, Challenge Bank, Bank of Melbourne, and Bendigo Bank.

Some building societies have since converted to banks without demutualising, such as Heritage Bank, which retained its mutual status and structure.

Here's a brief look at the top 10 banks in Australia by total assets in 2019-2023:

Australia's banking system is dominated by the Big Four banks: Commonwealth Bank, Westpac, ANZ, and NAB.

These four banks hold around 80% of the country's banking assets, making them the most influential players in the industry.

The Big Four banks are headquartered in major cities such as Sydney, Melbourne, and Brisbane, with a strong presence in regional areas.

The Reserve Bank of Australia (RBA) is the central bank and is responsible for setting monetary policy, regulating the banking system, and maintaining financial stability.

The RBA also manages the country's foreign exchange and gold reserves, and acts as a lender of last resort to the banking system.

Australia has a highly developed financial system, with a strong focus on consumer protection and financial regulation.

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Banking in Australia is a well-established and regulated industry, with a range of options available to consumers.

The Reserve Bank of Australia is the country's central bank, responsible for monetary policy and bank regulation, which has led to a stable banking system.

Major banks in Australia include the Commonwealth Bank, Westpac, ANZ, and NAB, which dominate the market but also offer a range of services, including online banking and mobile banking apps.

There are other retail banks in Australia, smaller and often regional, such as the Bendigo & Adelaide Bank and Suncorp Bank.

These banks often have a strong presence in their local communities and offer a range of banking services.

The Bank of Queensland is another example, which includes its retail arms ME Bank and Virgin Money.

Some banks, like Bankwest, St George Bank, and Bank of Melbourne, are subsidiaries or alternate trading names of the big four banks.

Bankwest, for instance, is a trading name of Westpac.

Similarly, Bank of Melbourne, St George, and BankSA are all trading names of Westpac.

The regulation of Australia's banking system is extensive and detailed, with multiple bodies involved. The Australian Prudential Regulation Authority (APRA) is responsible for licensing and prudential supervision of banks and other financial institutions.

APRA issues capital adequacy guidelines for banks, which are consistent with the Basel II guidelines. All financial institutions regulated by APRA are required to report on a periodic basis to APRA.

Certain financial intermediaries, such as investment banks, are neither licensed nor regulated under the Banking Act and are not subject to APRA's prudential supervision. They may be required to obtain licences under the Corporations Act 2001 or other Commonwealth or State legislation.

ASIC has responsibility for market integrity and consumer protection, and the regulation of certain financial institutions, including investment banks and finance companies. However, ASIC does not actually investigate any issues or propose any regulations concerning consumer protection, this authority is delegated to the EDR schemes and the Australian Competition & Consumer Commission (ACCC).

Banks are also subject to obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 as "reporting entities". They are required to identify and monitor customers using a risk-based approach, develop and maintain a compliance program, and report to Australian Transaction Reports and Analysis Centre certain cash transactions as well as suspicious matters and file annual compliance reports.

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The interbank lending market is a crucial part of Australia's banking system, where banks borrow and lend money to each other to meet their liquidity obligations. Banks must reconcile their positions every day, and those with a surplus of cash can earn interest on it, while those with a shortfall must borrow from another bank.

Banks can take out overnight loans or short-duration loans, also known as prime bank paper, for terms of between one and six months. The interest rate for these loans is based on the cash rate set by the Reserve Bank (RBA) every month, which is currently 0.10%.

The bank bill swap rate (BBSW) is used for short-duration loans, and it's set by the Australian Securities Exchange (ASX) since July 2017. Until then, the Australian Financial Markets Association (AFMA) determined the rate.

Banks with a surplus of cash can offer lower interest rates, while those with a shortfall may need to pay higher rates for their loans. The BBSW rate affects many other financial rates in Australia.

In times of a liquidity crisis, the Reserve Bank acts as a lender of last resort to ensure liquidity in the banking system. This is crucial in preventing a situation where there are insufficient funds in the interbank lending market to enable banks to balance their books.

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Australia's banking history dates back to 1817 when the Bank of New South Wales was established.

The bank's early years were marked by significant growth and expansion, with the establishment of branches in regional areas.

In 1853, the bank's name was changed to the Colonial Bank of Australia.

The Australian banking system has undergone significant changes since then, including the introduction of the Reserve Bank of Australia in 1924.

The Reserve Bank's primary function is to regulate the money supply and maintain monetary stability.

The bank's independence was established in 1996, giving it more autonomy to make decisions about interest rates and monetary policy.

The Australian banking system has a long history of stability and security, with most banks operating for over a century.

The Reserve Bank's headquarters is located in Sydney, New South Wales.

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The adoption of new technology has transformed banking in Australia, with banks rolling out automated teller machines (ATMs) as early as 1969.

The Commonwealth Bank-Bankwest network has the largest number of ATMs in Australia, with over 4,000 machines. NAB-rediATM network has over 3,400 machines, and Westpac-St George-BankSA and Bank of Melbourne network has over 3,000 machines.

EFTPOS technology was introduced in 1984, initially only allowing banks' existing debit and credit cards to be used. However, in 1985, the ATM (Financial) Network was created to link EFTPOS systems, providing access for all customers.

In 1974, the Australian banks organized a uniform credit card called Bankcard, which was later shut out of the EFTPOS system. Store cards and proprietary cards, such as fuel cards and Bartercard, were also excluded from the new system.

The widespread acceptance of credit cards and the development of SSL encrypted technology in the mid-1990s paved the way for E-commerce. This led to the introduction of telephone banking in the 1990s, followed by internet banking after 1995 and mobile banking after the 2010s.

By 2012, 27% of Australians had used mobile banking services in the previous three months, according to Bain, Research Now and Bain along with GMI NPS surveys.

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If you're planning to open a bank account in Australia, you may need to visit a branch in person. You can open an account online up to 14 days before you arrive in Australia, but you'll still need to bring some documents to the branch when you first visit.

To open an account, you'll need to bring original copies of your identification documents, such as your passport, driver's license, or other government-issued ID. If your documents are in a foreign language, you'll need to get them translated by a professional translator accredited by NAATI.

You can visit a CommBank branch to open your account, or you can choose from other banks like NAB, which has over 4,000 branches across Australia. At NAB, you'll need to visit a branch once you arrive in Australia to open your account.

Here are the documents you'll need to bring to the branch when opening your account:

As an international student in Australia, managing your money wisely is crucial to a stress-free study experience. Bank accounts are a great place to start, and you can open one in your home country or Australia, whichever is more convenient for you.

You'll need to provide identification and proof of address to open a bank account in Australia. The NAB app is a great digital feature to learn about, as it allows you to manage your account and pay bills on the go.

To make the most of your money, consider setting up a budget and tracking your expenses. This will help you stay on top of your finances and avoid any unexpected fees.

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Using a foreign exchange calculator can help you navigate the complexities of international transactions. NAB's foreign exchange calculator is a valuable resource that gives you indicative exchange rates.

This calculator is particularly useful for determining the costs of foreign currencies. With NAB's calculator, you can get a better understanding of how exchange rates will affect your transactions.

By using a foreign exchange calculator, you can make more informed decisions about your international transactions.

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Without banks, the Australian financial system would struggle to function smoothly. The banks play a major role in the country's financial system.

The banking sector's strong regulatory system is a key factor in maintaining stability. The Australian banking system is stable due to strong home prices.

Household debt is rising, which could be a concern if the banks weren't there to manage it. Moderate growth in wages also contributes to the stability of the banking system.

The banks offer a range of services, including business banking and trading in the financial markets. They also provide stockbroking and funds management services.

Australia has a wide range of banks to choose from, with many offering their services across multiple states.

Some of the biggest banks in Australia are national, meaning you can bank with them no matter where you live in the country. These include AMP Bank, ANZ, Commonwealth Bank, IMB Bank, ME Bank, NAB, St George Bank, Suncorp Group, and Westpac.

If you're looking for a bank that's a bit smaller but still offers national services, you might consider Beyond Bank Australia, which operates in NSW, WA, SA, and ACT.

In addition to these national banks, there are also some that cater specifically to certain groups, such as Defence Bank, which serves the Australian defence force and wider community.

Here are some banks that operate across multiple states, but might have some restrictions on services or availability:

Banking in Australia offers a range of services to suit your needs. You can start with a bank account that charges no monthly fees, making it a great option for those just setting up their life in the country.

Credit cards and loans are also available to help you manage your finances and achieve your goals.

You can get started with a bank account that charges no monthly fees, which is a great way to save some money. This type of account is available.

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To open an account, you can follow a few easy steps. You can open an account online up to 14 days before you arrive in Australia, or you can do it online or in person after you arrive. You can also visit any CommBank branch.

To formally prove your identity, you'll need to bring some documents to the branch when you first visit. This includes original copies of your passport, driver's license, and other identification documents. If your documents are in a foreign language, you'll need to get them translated into English.

You have several account options to choose from. Here are some of the key features of each option:

You can easily transfer money overseas, and it's worth exploring the benefits of making international payments with NAB.

You don't need a TFN to open a bank account, which is a relief for many people.

However, if you're a US tax resident, you'll need to provide your tax payer identification number, also known as a TIN, for certain financial transactions.

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If you're a foreign bank looking to operate in Australia, you'll need to obtain a banking authority issued by APRA under the Banking Act. This can be a wholesale bank through an Australian branch or an Australian-incorporated subsidiary.

Foreign banks wishing to engage in retail banking require a full banking licence, which is a more complex process. Only a few foreign banks have a retail banking presence in Australia.

Some foreign banks have a presence in the Australian merchant banking sector, but it's worth noting that foreign investment in the Australian banking sector is subject to certain regulations.

Foreign banks wishing to operate in Australia must obtain a banking authority from APRA under the Banking Act.

To get this authority, foreign banks can either operate as a wholesale bank through an Australian branch or conduct business through an Australian-incorporated subsidiary.

Foreign banks engaging in retail banking require a full banking licence, which is a more stringent requirement.

Foreign banks that don't want to obtain a banking authority can still operate a representative office in Australia for liaison purposes, but its activities will be restricted.

The Foreign Investment Review Board oversees foreign investment in the Australian banking sector, ensuring it aligns with the Banking Act, the Financial Sector (Shareholdings) Act 1998, and banking policy.

Proposed foreign takeovers or acquisitions of Australian banks are considered on a case-by-case basis and judged on their merits.

Only a few foreign subsidiary banks have a retail banking presence in Australia, with ING Bank (Australia) Limited, HSBC Bank Australia, Delphi Bank, and Bank of Sydney being notable examples.

Foreign banks have a more significant presence in the Australian merchant banking sector.

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Transferring money overseas can be a complex process, but it's not as daunting as it seems. You don't need a Tax File Number (TFN) to open a bank account, but you will need one if you're a US tax resident.

If you're planning to send money abroad, it's essential to consider the benefits of making international payments with a bank like NAB. They can offer you a range of services and competitive exchange rates, making the process smoother and more cost-effective.

Banking in Australia can be a bit confusing, especially when it comes to understanding the basics.

To start, you'll need to know the different types of bank accounts that are available. Our banking system offers a range of accounts to suit various needs.

You'll need a bank account name, BSB, and account number to manage your finances. These details are unique to each account.

The everyday banking guide is a great resource to learn more about banking basics. You can download the PDF guide to get started.

If you're still unsure, our bankers are happy to help you in person.

Australian banks have a long history, with the first bank established in 1842. State Bank of Victoria was one of the first banks in Australia, operating from 1842 to 1990.

The banking landscape in Australia has undergone significant changes over the years. In 1990, the government adopted a "four pillars policy" to prevent mergers between the big four banks. This policy has been in place ever since.

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The big four banks in Australia are Commonwealth Bank, Westpac, ANZ Bank, and National Australia Bank. These banks dominate the Australian banking market, with a significant market share. Here is a snapshot of the top four banking groups in Australia as of 2017:

In Australia, the banking scene is dominated by four major players: Commonwealth Bank, Westpac, ANZ Bank, and the National Australia Bank. These banks have a significant presence in the country.

The four major banks have undergone significant changes over the years, with acquisitions of smaller competitors. For example, Commonwealth Bank acquired the State Bank of Victoria in 1990 and Bankwest in 2008. This expansion has helped them grow their market share.

The government's "four pillars policy" has been in place since 1990, which aims to prevent mergers between the big four banks. However, this policy doesn't stop them from acquiring smaller banks.

Here are the top four banking groups in Australia, ranked by market capitalisation at share price on December 1, 2017:

One notable smaller bank in Australia is Suncorp Bank, which provides a range of services including general insurance, banking, life insurance, and wealth management.

Mutual banking in Australia is a unique sector, with over 100 credit unions, building societies, and mutual banks serving more than 4.6 million customers.

The largest customer-owned bank in Australia is Great Southern Bank, which has total assets of over A$19.5 billion. This makes it the largest of its kind in the country.

The Australian mutual banking sector is represented by the Customer Owned Banking Association, which was previously known as Abacus Australian Mutuals. This industry body advocates for the interests of customer-owned banks.

There are several notable customer-owned banks in Australia, including Newcastle Permanent, Heritage Bank, and People's Choice Credit Union. These banks have a combined total of over A$138 billion in assets.

Some credit unions and building societies have changed their business names to include the word 'bank' to overcome adverse perceptions. For example, Bank Australia was previously known as Bankmecu.

Here are some examples of customer-owned banks in Australia:

In Australia, there have been several former government-owned institutions that played a significant role in the country's banking history.

The State Bank of Victoria was one such institution, operating from 1842 to 1990.

Bankwest was another, in existence from 1895 to 1995.

The State Bank of South Australia operated from 1896 to 1991.

The Commonwealth Bank was formed in 1911 and ceased to be government-owned in 1991.

The State Bank of New South Wales was in operation from 1933 to 1994.

The Trust Bank of Tasmania was a former government-owned institution, operating from 1991 to 1999.

Here are some of the notable former government-owned banks in Australia:

AMP Ltd is a leading wealth management firm in Australia and NZ, offering a wide range of services including retail banking and wealth management.

AMP Bank Ltd, a subsidiary of AMP Ltd, is based out of Sydney and offers retail banking services like deposits, residential mortgages, and transaction banking services.

The operation of AMP Bank Ltd is spread across several continents, including Asia, the Middle East, Europe, and North America.

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Macquarie is a prominent Australian bank with a wide range of services.

Its headquarters in Sydney offers asset management, finance, banking, advisory and risk, and capital solutions.

Macquarie's offerings are comprehensive and designed to meet the diverse needs of its clients.

The bank's presence in Sydney is a testament to its commitment to the Australian market.

Macquarie's services are likely to appeal to individuals and businesses seeking a one-stop-shop for their financial needs.

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Banking in Australia varies significantly from state to state.

In New South Wales, for example, the Big Four banks have a strong presence, with the Commonwealth Bank of Australia being the largest bank in the state.

Western Australia has a more limited number of major banks, with the Bankwest being the largest.

The banking landscape in Victoria is similar to New South Wales, with the Big Four banks dominating the market.

In Queensland, the major banks are also well-represented, with the Commonwealth Bank of Australia and ANZ Bank being the largest.

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Bendigo is a major player in the Australian banking scene. It was formed through a merger between Bendigo Bank and Adelaide Bank, making it one of the largest retail banks in the country.

This merger has given Bendigo a strong presence in the market, allowing it to offer a wide range of financial services to its customers.

Victoria has a range of banks that cater to different professions and communities.

If you're a public servant, you might be interested in BankVic, which serves police, health, emergency, and public services.

BankVic is a great option for those in these fields, offering tailored banking services.

In Victoria, you can also bank with Bank Australia, Bank of Melbourne, Bendigo Bank, or Macquarie Bank.

Teachers in Victoria have their own banking option with Victoria Teachers Mutual Bank.

Here are some of the banks you can consider in Victoria:

In the South, banking is a significant industry with a long history. The South is home to many major banks, including Wells Fargo and Bank of America.

The region's banking landscape is shaped by its diverse economy, which includes major industries like textiles, agriculture, and energy.

In Texas, the state's banking laws are relatively relaxed, allowing for more flexibility in banking practices. This has contributed to the state's reputation as a banking hub.

Louisiana's banking sector is heavily influenced by its unique cultural and economic environment. The state's banking laws reflect its history as a major trading center, with a focus on facilitating international trade.

The South's banking industry is also notable for its high level of technology adoption, with many banks investing heavily in digital banking platforms.

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Queensland is home to a diverse range of financial institutions, including the Commonwealth Bank, ANZ, and Westpac, which offer a wide range of banking services to residents and businesses.

The state's major cities, such as Brisbane and the Gold Coast, have a high concentration of ATMs and bank branches, making it easy for locals to access their money.

Queenslanders can take advantage of the state's competitive banking market by shopping around for the best deals on home loans and credit cards.

The average interest rate on a Queensland home loan is around 3.5%, which is lower than the national average.

Queensland's economy is driven by industries such as agriculture, mining, and tourism, which are often supported by specialized banking services.

The state's banking sector is also known for its strong online presence, with many banks offering mobile banking apps and online banking services that allow customers to manage their accounts from anywhere.

In Australia, you'll find a wide range of banks to choose from, each with its own unique features and services.

Some banks are based in specific states, while others operate across multiple states or even the entire country. Banks that service a few states have their state names abbreviated in brackets, such as NSW (New South Wales), VIC (Victoria), and QLD (Queensland).

Keep in mind that many banks have branches and Automated Teller Machines (ATMs) in different states, making it easy to access your money no matter where you are in Australia.

If you're looking for banks that operate in the Northern Territory, check out the 'Australia-wide or multiple states' list for more information.