There have been exploratory conversations between Bendigo and Adelaide Bank and Bank of Queensland, Bendigo’s barrister told the Australian Competition Tribunal yesterday.
“There was a meeting” involving Bendigo’s CEO, Marnie Baker, in 2022, Nicholas De Young told the Tribunal, which is considering the ANZ takeover offer for Suncorp bank that was blocked by the ACCC.
“The proposed BOQ Bendigo merger … we say is a mere possibility.
“There are challenges BOQ face as a group, financially … and court enforceable undertakings [with APRA and AUSTRAC] in 2023.
“Those recent events we submit make a proposed BOQ Bendigo merger a further mere possibility.”
De Young also used the remainder of his time before the Tribunal to pour scorn on the contentions of ANZ and Suncorp that neobanks and non-bank lenders provide much competitive tension in the home loan market.
“None have established an appreciable market share, and many have failed,” he said.
He pointed to the return of banking licences by Volt Bank and Xinja Bank, the sale of Nano’s residential mortgage portfolio to AMP Bank and even Bendigo’s investment in Tic:Toc (now Tiimely).
Finally, De Young set out to convince the Tribunal that Bendigo had good reason to anticipate an uplift in its long-term credit rating should it succeed in merging with Suncorp Bank.
Bendigo would be liable for the major bank levy following any such merger.
“If the merged firm happened to fail, it is hard to see the government of the day saying: ‘We would not support it,’ if it had been paying the major bank levy” he said.