24.

There are three parts to Question 24. All questions here must be answered. Please clearly outline which question you are answering by labelling it as Q24a, Q24b or Q24c.

Financial institutions have to abide by various regulations, typically more so than any other corporation. Answer the following questions which relate to some of these regulations:

Q24a) There is a policy in Australia that prevents any merger between Australia's major banks. Identify this policy (ie. what is it commonly knows as?) AND provide a brief background identifying the key reason this policy was imposed. (5 marks)

Q24b) Increasingly, arguments have been put forward to abolish the policy identified above in part a. Identify TWO arguments to support the abolition of this policy. (5 marks)

Q24c) You have 3 tasks here: (5 marks)

• Identify one key reason for separating commercial banking and investment banking activities.
• Identify one key reason for allowing commercial banking and investment banking to operate by side-by-side within the same organisation.
• What do you call a bank that offers both investment banking and commercial banking services?