Commonwealth Bank

The Commonwealth Bank, which was established in the year 1911, is situated in Australia and is one of the biggest financial institutions in Australia. The Commonwealth bank was actually established by the Government of Australia. The Commonwealth Bank got itself enlisted in the Australian Stock Exchange in the year 1991 and was totally privatized in the year 1996. The Commonwealth Bank according to the recent statistics is among the top five companies enlisted in the Australian Stock Exchange with renowned companies like ASB Bank, Colonial First State Investments Limited and CommInsure and CommSec.

The History Behind the Foundation of the Bank
The act that worked behind the foundation of the Commonwealth Bank is the Act of Parliament in Australia in the year 1911, under which the was created. The nationalization of the banks was a deliberate policy formed by the government of Andrew Fisher Labor. At this point of time the Commonwealth Banks of Australia was formed in a way that it had both savings and general bank business. The Commonwealth Bank in Australia was also the first bank in Australia to gain the Guarantee of Federal Government. The bank had some arduous proponent King O’Malley who was also the American Australian Labor Politician. The first governor of the Commonwealth bank was Denison Miller.

It is recorded that the first branch of the Commonwealth Bank was opened in the city of Melbourne on 15th July in the year 1912. The Commonwealth Bank also did its business through various post office agencies after an agreement made between the Commonwealth bank and the Australian Post that exists even today. In the year 1912, the Commonwealth Bank merged itself with the State Savings Bank, in the state of Tasmania which enabled it to have its branches in all six states in Australia by the year 1913.

In the year 1916, the Commonwealth bank moved its Head Quarter from Melbourne to Sidney. The Commonwealth Bank also followed the Australian troops to places like New Guinea and opened an account there in Rabaul . It opened small agencies in various other places in other parts of the country as well.

The Commonwealth Bank in the year 1920, the Commonwealth Bank was given the responsibility to issue the Australian Notes from the treasury department. This was the start of the Commonwealth Bank’s evolution to the Central Bank of Australia. In the same year the Commonwealth Bank also merged itself with a bank in Queensland named as the State Savings Bank. In the year 1931, the Government of Australia transferred the Government Savings Bank of New South Wales to the Commonwealth Bank and Australian Government also transferred the current and fixed deposit account of the Rural Bank Department. The Commonwealth Bank also took over the State savings Bank of New South Wales which was established in the year 1863.

Commonwealth Bank as the Central bank of Australia
The Commonwealth Bank’s activities increased as the central bank of Australia at a very steady pace. It actually started getting a little rapid after the year 1920. In the year the Board of the Banking Authorities came to face a conflict with James Scullin who was the man with power for the Government of labor party . In reacting to the to the great depression that took place in the 1930, the Commonwealth Bank’s Chairman Robert Gibson refused to enlarge the credit as was proposed by the Government of Australia. Gibson wanted the government to cut pensions rates which was denied by the then Prime Minister of the Labor party Scullin. The atmosphere that was created by this conflict between the Banking Authority and the Government led to the down fall of the Scullin Government. Conflict surrounding this issue led to the fall of the government and also the majority of the people wanted the government of Australia to take the control over the policies that are related to monetary matters.

In the year 1942, the commonwealth Bank’s Commonwealth Banking Corporation or the CBC set aside its banking activities in the countries like Papua New Guinea when the Japanese troops captivated most of the towns in which the Commonwealth bank used to operate. The Japanese Troops also bombarded many places and especially ports which forced the Commonwealth bank to suspend its work only to resume possibly in the year 1944.

At the time when the World War II broke out the Commonwealth Bank was given most of the powers that a central bank should posses at the time of emergency declared in the state. A legislation was passed in this respect to provide the Commonwealth Bank the power to keep the economy of the country solid. As the World War II came to an end the Commonwealth bank all its powers that it had received to expand its economic condition. The Government of Australia also had a likewise aim as Australia was looking to expand its immigration program. Responding to this move to the Government of Australia the Commonwealth Bank founded a service that would provide migrant information. Within just five years the commonwealth bank expanded at a rapid pace and opened more than one hundred branches all over Australia. In the year 1951 it even opened a branch in the Solomon Islands.

Commonwealth Bank’s take overs and Privatization
In the year 1989 the commonwealth bank took over more than 70 percent of the ASB Bank in New Zealand which helped them to strengthen their stand in New Zealand. In the year 1991, the Commonwealth Bank took over the State bank of Victoria which was founded in the year 1842. Within five years,from 1991 to 1996, the Government of Australia made the Bank a completely privatized one.
The Commonwealth Bank sold off whatever shares it had in the National Bank of Solomon to another bank, The Bank of Hawaii.

In the Year 2000, the Commonwealth Bank and the Colonial Colonial First State Investments Limited declared their want to merge themselves together. Their appeal for merger got approved in that year itself by the Supreme Court of Victoria. The Deal was completed in the month of June that year and became a very big institution which took over the remaining 25 percent of the ASB Bank.