State Bank of South Australia

The State Bank of South Australia was a bank created in 1984 and owned by the Government of South Australia. The bank became the subject of a two-year South Australian Royal Commission upon collapse in 1991. The surviving part of the bank now exists as BankSA.

The bank was expanded in 1984 by its merger with the Savings Bank of South Australia, with the expanded entity retaining the "State Bank of South Australia" name.

In March 1988, the bank purchased the life insurance and managed funds business Oceanic Capital Corporation for A$60.0 million.

Questions over the financial viability of the bank were first raised prior to the 1989 state election by Opposition Liberal Party member Jennifer Cashmore.

In June 1990, the United Building Society was purchased for $NZ150.0 million.

The bank's financial implosion in 1991 was one of the biggest economic disasters in the state's history. As a government-owned bank, deposits were guaranteed (legally underwritten) by the Government of South Australia.

The bank's managing director, Tim Marcus Clark, was ultimately considered the most legally responsible for the bank's downfall,Labor Premier John Bannon resigned in 1992, and a landslide electoral defeat of the state Labor government occurred at the subsequent 1993 election, won by the Liberal opposition led by Dean Brown.

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