There is news that the Bank of Queensland Ltd. (BOQ) is trying to buy-out CIT Group Australia along with a firm working in the vendor finance business of New Zealand.

This step will be in the direction of consolidation in the market and is being done at a time when the financial sector is undergoing a ramp up.

The announcement comes from BOQ just a day after it said that it would by acquiring St Andrew's Australia insurance business from Commonwealth Bank of Australia. No details about the finances involved in the deal were given.

The Brisbane-based financial institution also said that the due-diligence of the whole project will be starting very soon. It would take at least two weeks to finish.

Talking about the money involved in it, Spokeswoman of BOQ, Caroline Dunworth said that the deal will cost the bank close to $100 million for the vendor finance business and $3.5 billion for equipment finance business.

As of now, there are indications that BOQ has been able to raise $340 million to fund its acquisitions. It now faces roadblocks like high funding costs, bad debts and non-inclining interest incomes.