Further global stock market plunges and the Government's guarantee for bank deposits have inspired Suncorp-Metway to take a fresh look at the planned sale of its banking and wealth management operations.

In a statement to the stock market, Suncorp said it was assessing the implications of events in world financial markets and the Government's initiatives for the financial sector, for the planned sale.

It has been suggested the Government's guarantee has erased the competitive disadvantage Suncorp had in securing new funding, and that this new position would increase the value of the banking business.

However, a spokesperson for the company said this was not the reason for the review of the sale process.

"We need to consider the impact of global market volatility and developments domestically," the spokesperson said. "We need to consider the implications for the entire banking sector."

Suncorp said it will continue discussions with various parties about the planned sale, and will provide an update to the market in due course.
 
Earlier this month, Suncorp announced it had been approached by several parties expressing interest in acquiring the banking and wealth management operations.

Although Suncorp did not want to disclose which parties, the Commonwealth Bank of Australia has confirmed it was involved in earlier discussions.

ANZ and National Australia Bank are also thought to have shown interest.