CBA BankWest acquisition passes final regulatory hurdle

Federal Treasurer, Wayne Swan has approved the takeover of BankWest by the Commonwealth Bank of Australia, but has attached conditions to the deal. In particular, CBA is required to maintain and grow the BankWest brand as well as provide support for staff affected by the acquisition. CBA is also required to maintain BankWest's head office and core functions in Western Australia, and CBA and BankWest branches and business centres in Western Australia are not permitted to close as a consequence of the acquisition.

Importantly, CBA is also required to remove fees for CBA customers using BankWest ATMs, and vice versa, from 3 March 2009.

Mr Swan said the acquisition removes uncertainty over the future of BankWest and helps instil more confidence in the Australian financial system. "The merged entity will have a larger balance sheet and stronger capital position, as well as broader access to funding markets leaving it better placed to withstand further challenges from the global financial crisis. The BankWest brand will also benefit from CBA's lower funding costs, helping it to offer lower interest rates on loans."