Australian Bank Explained

Australian Bank (ABL) was an Australian retail bank that operated between 1981 and 1989. It was established by Perth businessman Garrick Agnew (its first chairman) and Sydney-based Mark Johnson[1] (its first CEO). Johnson was also a co-founder of Macquarie Group.

History

At the time of its establishment in 1981, it was the first new trading bank in Australia since 1945.[2]

In the late 1970s, Agnew had expressed concerns that Australian banks were not sufficiently competitive. During a discussion with fellow Western Australian John Stone (then Secretary to the Treasury), Stone suggested (possibly in jest) that, if Agnew were so concerned, he should establish a bank of his own.[3] [4]

The bank opened offices in Perth (190 St George's Terrace), Sydney (17 O’Connell Street) and Melbourne (400 Collins Street, moving to 395 Collins Street from mid 1985).

Whilst initially successful, the bank soon struggled [5] in the wake of the turmoil in the Australian banking environment during the mid to late 1980s, particularly with bad debts arising from overseas loan funding following the floating of the Australian Dollar in December 1983.

The bank downsized through a series of staff redundancies commencing in early 1986, and finally wound up in February 1989 following its purchase by State Bank of Victoria.[6] [7] [8] [9]

See also

Notes and References

  1. Web site: Australian Honours and Awards – Officer of the Order of Australia (AO) 2010 . Governor-General of the Commonwealth of Australia . 25 August 2019 .
  2. News: Australian Bank opens for business. . . 6 February 1981 . 16 October 2018 . 10 . National Library of Australia.
  3. News: Businessman's Plan - New Trading bank being considered. . . 2 April 1980 . 16 October 2018 . 17 . National Library of Australia.
  4. Web site: Australian Bank and Banking in the 1980's – An Address by W.P. Gurry – 23 July 1981 . The Securities Institute Journal (September 1981) . 16 October 2018 .
  5. News: Australian bank loss. . . 11 May 1985 . 16 October 2018 . 24 . National Library of Australia.
  6. News: Vic State Bank offers $92m for Aust Bank. . . 22 December 1988 . 16 October 2018 . 13 . National Library of Australia.
  7. News: MLC claims inside running in bid for Australian Bank. . . 14 January 1989 . 16 October 2018 . 11 . National Library of Australia.
  8. News: SBV victorious in battle for Australian Bank. . . 24 January 1989 . 16 October 2018 . 17 . National Library of Australia.
  9. Web site: Submission to the Inquiry into the Australian Banking Industry - Appendix 2: Australian Banks – 1980 to 1990 . January 1991 . Reserve Bank of Australia . 16 October 2018 .