Liberal and Nationals MPs have welcomed Westpac’s commitment to pause some regional bank closures while the Rural and Regional Affairs and Transport Committee’s inquiry into regional bank closures is ongoing. National Australia Bank and ANZ are still yet to commit to putting a halt to closures. Source: Timberbiz
Since September 2022 there have been 92 bank branches either closed or slated for closure and so the Regional and Rural Affairs and Transport Committee called for banks to put a halt on closures while an inquiry into regional banking closures was undertaken.
The announcement from Westpac will mean that bank branches at Denmark in WA, Gatton, Cloncurry, Tully, and Ingham in QLD, Robinvale and Sale in Victoria and Kingston SE (BankSA) in SA will remain open.
“Westpac’s announcement is welcome news, but it is effectively just a stay of execution. The banks need to now work with the Senate on practical solutions to maintain people’s access to financial services. We can’t just leave country towns high and dry,” Senator Canavan, Chair of the Senate Rural and Regional Affairs and Transport Committee said.
“The Senate Committee is aware that Westpac has plans to close branches in Cooper Pedy and Port Douglas. We are following up with Westpac on the status of those closures.”
The National Australia Bank, Westpac, St George, ANZ, Bankwest, the Bank of Melbourne, and BankSA have all closed branches or announced closures.
Senator Rennick said decisions to close rural and regional banks and branches widen the gap between the cities and the regions.
“Banks need to realise they have a social licence to ensure that essential services are provided to people in the bush, where much of the wealth in this nation comes from,” Senator Rennick said.
“We’ve got a case of the Australian taxpayer stepping in to underwrite the banks during the GFC and the pandemic and now the banks are walking away from their customers in the regions.
“And it’s not just the businesses that need access to cash and banking services, it’s also your volunteer clubs like your local footy club on the weekend,” Senator Rennick said.
The Senate’s inquiry will investigate the branch closure process, including the reasons given for closures; the economic and welfare impacts of bank closures on customers and regional communities; and the effect of bank closures or the removal of face-to-face cash services on access to cash and is due to report its findings in December.
Member for Barker, Tony Pasin MP said that face to face banking services add to the vibrancy of regional towns. The decision to close the branch in Kingston SE was extremely disappointing not only for Bank SA customers but for the whole community who feel let down by Bank SA’s decision to pack up and leave town.
Federal Member for O’Connor Rick Wilson MP said small country towns like Denmark relied heavily on their banks.
“The face-to-face services of a bricks-and-mortar bank are irreplaceable in small regional communities, especially ones such as Denmark that have an older age profile,” he said.
“Banks are also major generators of business activity in country towns, and their departure often leaves an economic black hole.
Submissions to the inquiry are open until 31 March 2023. Further information, including how to make a submission, can be found on the Rural and Regional Affairs Committee website here.
