One of the consequences of the deregulation of the Australian financial sector is steady decline of the number of some non-bank financial institutions (NBFIs), especially, building societies and credit unions in Australia. Some of these institutions i.e. building societies and credit unions) have merged to create bigger ones, whilst others have restructured into banks (for example, Defence Bank and Heritage Bank). Students will complete the following three tasks: (1) Research the institutions (including Defence Bank and Heritage Bank) that have changed from building societies/credit unions into banks and determine the rationale for this change. (2) Consider the implications of this trend for the remaining non-bank financial institutions, and whether the trend should be allowed to continue. (3) (3) Furthermore, in the light of the negative finds contained in the 2019 final report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, recommend to the government whether or not building societies and credit unions should be allowed to continue changing into bank