The acquisitions of St George Bank by Westpac and Bankwest by the Commonwealth Bank in 2008 increased the market share of the 'big four' banks, raising concerns that increasing concentration from bank mergers may be significantly reducing competition in the Australian market for financial services.

This report looks at the economic, social and employment impacts of the recent mergers among Australian banks. It examines the measures available to enforce the conditions on the Westpac Banking Corporation/St George Bank Ltd merger and any conditions placed on future bank mergers, the capacity of the Australian Competition and Consumer Commission (ACCC) to enforce divestiture in the banking sector if it finds insufficient competition, and the adequacy of the Trade Practices Act 1974 in preventing further concentration of the Australian banking sector. It looks at the extent to which Australian banks have 'off-shored' services such as credit card and loan processing, information technology, finance and payroll functions, and the impact on employment for Australians. The report also examines alternative approaches to measuring competition.