A minor recommendation of the inquiry was that holding companies should be allowed to own banks, and this is likely to go through. Some lifting of ownership restrictions on banks was also suggested by the inquiry and endorsed by the government. In the most recent example of industry consolidation, National Mutual Holdings Ltd. and Lend Lease Corp. have moved to form one of the largest financial services groups in Australia and New Zealand. Under a non-binding preliminary agreement, the pair has agreed to form two joint ventures covering their funds management and insurance operations in both countries. Banks Australia's main financial centers are Sydney and Melbourne, with the head offices of major banks and life companies split equally between the two cities.
Most foreign banks have their Australian headquarters in Sydney.
This market share position has not changed for several years. Deposits are not guaranteed and there is no system of deposit insurance in Australia. Following reforms in 1992, there are no restrictions on the number of foreign banks operating in Australia. There were 28 foreign banks operating in Australia in April 1997. Foreign banks are permitted to operate as branches, rather than as subsidiaries, provided they do not seek to raise retail deposits.