AUSTRALIA'S COMPETITION WATCHDOG REJECTS BASIC BANK ACCOUNT IDEA.

AsiaPulse News, December, 2002

SYDNEY, Dec 16 Asia Pulse - The consumer watchdog today rejected plans by 10 Australian banks to offer a basic bank account because it could reduce competition.

The Australian Competition and Consumer Commission (ACCC) said it proposes to deny authorisation to the banks's plan to collectively offer a basic bank account with minimum features.

"The ACCC is concerned that the current proposed structure has the potential to dampen competition between the major banks and result in the proposed minimum features becoming the industry standard," ACCC chairman Allan Fels said.

"The proposed bank account does not go far enough, but the ACCC would welcome a substantially enhanced initiative."

Prof Fels also noted that the Trade Practices Act...