State Bank of Victoria
Encyclopedia
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
that existed from 1842 until 1990 when it was taken over by the Commonwealth Bank. It was owned by the State of Victoria
Government of Victoria
The Government of Victoria, under the Constitution of Australia, ceded certain legislative and judicial powers to the Commonwealth, but retained complete independence in all other areas...
.
The bank collapsed due to the weight of the bad loans made in the 1980s, in particular by its merchant banking arm Tricontinental, after deregulation
Deregulation
Deregulation is the removal or simplification of government rules and regulations that constrain the operation of market forces.Deregulation is the removal or simplification of government rules and regulations that constrain the operation of market forces.Deregulation is the removal or...
of the banking industry in the mid-1980s by the Hawke
Bob Hawke
Robert James Lee "Bob" Hawke AC GCL was the 23rd Prime Minister of Australia from March 1983 to December 1991 and therefore longest serving Australian Labor Party Prime Minister....
ALP
Australian Labor Party
The Australian Labor Party is an Australian political party. It has been the governing party of the Commonwealth of Australia since the 2007 federal election. Julia Gillard is the party's federal parliamentary leader and Prime Minister of Australia...
government. Tricontinental eventually collapsed, which threatened the existence of the State Bank and forced its sale to the Commonwealth Bank.
These events were a key factor in the defeat of the Labor government of Joan Kirner
Joan Kirner
Joan Elizabeth Kirner AM , Australian politician, was the 42nd Premier of Victoria, the first woman to hold the position, which she held for two years prior to a landslide election defeat.-Biography:...
and the election of the Liberal Party
Liberal Party of Australia
The Liberal Party of Australia is an Australian political party.Founded a year after the 1943 federal election to replace the United Australia Party, the centre-right Liberal Party typically competes with the centre-left Australian Labor Party for political office...
, led by Jeff Kennett
Jeff Kennett
Jeffrey Gibb Kennett AC , a former Australian politician, was the Premier of Victoria between 1992 and 1999. He is currently the President of Hawthorn Football Club. He is the founding Chairman of beyondblue, a national depression initiative.- Early life :Kennett was born in Melbourne on 2 March...
, at the 1992 Victorian state election.