Australia's AMP Ltd. & AXA Asia Pacific looks forward to a merger worth A$ 13 billion. The merger will give a run for their money to the competitors, in banking and management sectors.

Australia's banking sector is majorly ruled by the following 4 banks, Westpac Banking Corp (WBC. AU), Commonwealth Bank of Australia (CBA. AU), National Australia Bank (NAB. AU) and Australia and New Zealand Banking Group (ANZ. AU), the merger will mean competition to these 4 banks and would now be considered as the fifth pillar.

The securitization markets are set to recover very soon and this will mean a positive outlook fundamentally for the merger. The analysts have a lot of expectations from the merger.

The competition is not only in the industry but politically also it has become a major issue after the hike in the mortgage interest rates in November. The hike was not a small one, the Reserve bank of Australia had actually raised the interest rates to double.

Small lenders such as mutual credit unions and building societies are helping the banks to improve their functionality by providing them stiff competition.