MyState Ltd.is likely to engage in M&A activity as it looks to expand its reach throughoutAustralia, Business Spectator reportedApril 6, citing sources.

The lender is tipped to be up for sale or on the lookout fora merger partner, sources said.

MyState declined to comment on the matter, the publication reported.

Other regional lenders are also reportedly candidates for mergeractivity as banks face tougher capital requirements that are putting pressure ontheir margins. Suncorp Group Ltd.is said to be looking to sell its corporate bank to Bank of Queensland Ltd.