Finance Minister John Manley said Monday that any mergers between Canada’s big banks won’t happen until September 2004.

Manley delivered the federal government’s response to the recommendations of the House of Commons Standing Committee on Finance and the Standing Senate Committee on Banking, Trade and Commerce on the public interest considerations in reviewing merger proposals between large banks.

“I would like to thank both committees for their excellent work, which was helpful in clarifying the public interest considerations and also raised broader issues regarding the sector’s future,” Manley said.

He said that a revised set of merger guidelines will be released by the end of next June, following by three months to allow the banks to adjust to the new rules.

Given the importance of financial services to Canada’s competitive advantage, Manley said, “it is clear that the sector needs a policy framework that will allow it to continue to play a significant role in our economic growth.”

The government’s response sets out new public interest considerations for large bank mergers. These considerations include the development of a strategy by the merging financial institutions that supports long-term growth and the creation of high quality jobs in Canada.

It also reviews broader issues, such as the restriction on cross pillar mergers, the need for structural guidelines, the process for assessing multiple merger proposals, and measures to ensure robust competition in the sector.