Commercial Bank of Australia
The Commercial Bank of Australia Limited ( CBA) was founded in 1866 in Melbourne, Victoria. 1982 the bank merged with the Bank of New South Wales to Westpac Banking Corporation.
History
Australia
The Commercial Bank of Australia Limited was established as the tenth commercial bank in the British colony of Victoria until comparatively late in 1866. Co-founder and later chairman of the bank was the Scottish businessman and twelfth Prime Minister of Victoria, James Service (1823-1899)
Nevertheless, the Bank focused in the first years of their business only to Victoria, the business was rather moderate. Thus, the deposits were in 1875 in the bank at 835 197 Australian pounds, compared to the then largest bank, the Bank of Victoria, which recorded 2,983,605 Australian pounds in deposits on its balance sheet.
After the start-up boom of the banks and the Australian gold rush in 1851 a fierce competition started among the banks. In order to grow and gain market shares, the banks opened branches without regard to the demand. So HG Turner, the general manager of the Commercial Bank of Australia was quoted in 1880 with his critical remarks that in 1880 in Victoria were 326 bank branches and thus 2760 inhabitants came on a branch, while 12,000 residents were common in England on a branch. There was in some places and districts up to 7 branches, where one or two branches would have been enough.
Also, there was a construction boom in the colony. 1880 were covered 2/3 of all the award in Victoria on loans mortgages on land. The late 1880s then, the situation came to a head. In the first financial crash of 1891-1892, it mainly affected the housing and finance companies that had arisen in the real estate boom of the 1880s. Between 1891 and 1993, 54 of them presented their business one, 32 of them forever. Because bank customers withdraw their deposits quickly tried, had also temporarily shut their doors between July 24, 1891, the June 8, 1892 26 banks.
The first bank that went into the second crash in 1893 in the liquidation, the Federal Bank of Australia was in January 1893., It was but then the Commercial Bank of Australia, who, having graduated from April 5 for 30 days a panic in the financial markets triggered. Both banks had a great significance for the property market. Accordingly violently were the market reactions. Twelve other banks followed with closures in quick succession, and thus increased the panic.
Although after 30 days, the Commercial Bank of Australia opened again after its restructuring, other banks remained closed for up to 130 days, thus increasing the financial constraints. At this time, commercial banks controlled about 70 % of total deposits and 50 % of these deposits were withdrawn with the closures at once the market. Partial withdrawals of deposits lasted until the early 1900s.
1982 merged the Commercial Bank of Australia Limited with the Bank of New South Wales and were used to Westpac Banking Corporation.
New Zealand
1913, the Commercial Bank of Australia with the Commercial Bank of Australia (Ltd ) Act was approved in New Zealand and got, like other New Zealand banks also to be able to spend the right awarded banknotes. The Bank opened 19 branches throughout the country, but did not play a significant role. By 1934, only 3% of all New Zealand Banknotes of the Commercial Bank of Australia issued.
1982 merged the New Zealand Commercial Bank of Australia Limited with the Bank of New South Wales and were also renamed to New Zealand Westpac Banking Corporation. By restructuring in 2006, then the Westpac New Zealand Limited was established as a result.
See more Main article: Westpac New Zealand
Swell
All sources of information and links in English
- Prof. Sydney James Butlin, Australia and New Zealand Bank, Longmans, Green and Co Ltd, London, 1961.
- Matthew Wright, The policy origins of the Reserve Bank of New Zealand, Reserve Bank of New Zealand, Bulletin Vol 69 No. 3, September 2006.