The Australian Competition and Consumer Commission has today issued the first report of the Monitors on the Commonwealth Bank/Colonial undertakings.
On 27 May 2000, the ACCC accepted undertakings from the Commonwealth Bank to address concerns that its acquisition of Colonial would result in a substantial lessening of competition in the retail banking markets in Tasmania and regional NSW.
In regard to price, the Commonwealth Bank committed to ensuring that the rates, fees and charges on products in Tasmania and regional NSW are equivalent or as favourable as those charged to Commonwealth Bank customers in metropolitan NSW.
In regard to service quality, the Commonwealth Bank guaranteed to maintain a level of service quality in Tasmania and regional NSW equivalent to or better than that in metropolitan NSW.
In regard to product range, the Commonwealth Bank undertook to make available to customers residing in Tasmania and regional NSW, subject to certain conditions, the same standard products as are available to Commonwealth Bank customers residing in metropolitan NSW.
Independent Monitors were appointed in Tasmania and regional New South Wales to ensure that undertakings in relation to price, service quality and product range were complied with. The Monitor for regional New South Wales is the Independent Competition and Regulatory Commission of the ACT, and the Monitor for Tasmania is the Government Prices Oversight Committee of Tasmania.
The report covers the first half-yearly period after the merger that ended on 30 November 2000. The Monitors have found that the Commonwealth Bank has substantially complied with the terms of the undertaking during the first reporting period.
Although service standard problems with the operation of the Colonial Trust Bank in Tasmania were identified, the Tasmanian Monitor concluded that these matters were not attributable to the Commonwealth Bank acquisition of Colonial and reflected legacy issues arising from the merger of Colonial and Trust Bank.