State Bank of South Australia
The
State Bank of South Australia was a
bank owned by the
Government of
South Australia. The bank was formed by the
1984 merger of two other public banks: the
Savings Bank of South Australia and the State Bank of South Australia.
The bank's financial collapse in
1992 was one of the biggest events in the
history of South Australia. The State Bank's deposits were legally underwritten by the
Government of South Australia, putting South Australia into billions of dollars of debt. SA State Bank managing director
Tim Marcus Clark ultimately took most legal responsibility for the Bank's downfall. Politically, it caused the resignation of premier
John Bannon in 1992, and the crushing electoral defeat of the South Australian
Labor government at the
1993 election..
The State Bank collapse has continued to affect South Australian finances and politics well into the next century. The State Bank debt was given as the main reason for the privatisation of
ETSA by the
Liberal government of
John Olsen.
The remnants of the State Bank were acquired by
Advance Bank which itself is now a division of
St George Bank and trades in South Australia as the Bank of South Australia or BankSA.
