The Australian government has approved a $A17.3 billion takeover of St George Bank by Westpac.
It cites a need for strong banks in the current global financial crisis.
Treasurer Wayne Swan said the approval for the merger was subject to conditions that would be in place for three years.
They include maintaining the existing number of Westpac and St George branches and ATMs, and dedicated management teams for St George and Westpac retail banking.
The merger is still to be voted on by St George shareholders.
