More banks to merge in 2009

Bank of Queensland and Suncorp face funding pressures and may be possible takeover targets in 2009. Bank of Queensland chief executive David Liddy said if the bank had more scale it could be more aggressive in seeking wholesale funding. Liddy says the bank model that relies on wholesale funding and broker originated mortgages will not survive in the future. QBE is thought to be interested in Suncorp’s insurance business while CBA and ANZ have both expressed an interest in the banking operations. Bendigo started to reduce its reliance on wholesale funding 12 months ago and is now thought to an unlikely target for consolidation.

Source: Australian Financial Review