Increasing Competition between Banks and Life Assurance Companies: A Clash of Giants or a Non‐Event?

Like many other Western Countries, Australia's post‐war financial system was tightly controlled by government regulation. In a few short years, however, following a government appointed inquiry, most of the regulations have been swept away, making it possible, for example, for life assurance companies to enter the banking industry. At the same time, changes in official regulation of life assurance have made it easier for banks to retaliate by entering the life assurance business. The background to these developments are outlined and some of their effects on both banks and life offices are discussed.