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Banking industry in Australia was strictly regulated until 1980s. After that it became very difficult for a foreign bank to establish branches in Australia. As a result, Australia had very few banks when compared with countries like the United States or Hong Kong. Furthermore, banks in Australia were divided into two distinct categories, which are known as saving banks and trading banks. Saving banks paid absolutely no interest to their depositors and their lending activities were then restricted to providing mortgages. trading banks in Australia were essentially merchant banks, which did not provide services to the general public.
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