Westpac and others to go under 5 dollars, page-9

In Germany, pre-GFC there were 4 major banks. Now there's 2. Banks' business model is to hand out their earnings in dividends which leaves them little for savings on rainy days. Leveraged at 20:1, if their business model goes backwards for any extended period of time they also don't have much in assets they can sell to cover costs. Most of their value is in the intangible value of being an existing bank. So mergers are the best way for them to resolve debt issues. In the coming austerity economy, Australia will not be not big enough to support 4 banks.