Covid-19: ‘The big four banks have betrayed regions’

The big banks are using the cover of Covid-19 to close regional branches and abandon rural communities, says Decentralisation Minister Andrew Gee.

Decentralisation Minister Andrew Gee.

The big banks are using the cover of Covid-19 to close regional branches and abandon rural communities, says Decentralisation Minister Andrew Gee, who is urging his Nationals party colleagues to back government intervention to keep them operating.

Finance Sector Union data shows the banks have closed or announced shutdowns for about 300 branches and ATMs since the pandemic, with Mr Gee taking a plan to impose minimum service requirements on regional banks to his colleagues in the Nationals partyroom.

Mr Gee’s NSW electorate of Calare is home to two Commonwealth Bank branches – Blayney and Molong – and both are due to close on Friday. He has ­accused the big four of betraying loyal rural customers.

“We are the centre of Australia’s economy, growing our country’s food and produce, fighting droughts and bushfires, and yet the big banks are turning their backs and using the cover of Covid-19 as an opportunity to close branches,” Mr Gee said.

He said executives from CBA were planning to visit the Blayney and Molong branches two weeks after the planned closure date.

“This is a slap in the face to the local Commonwealth Bank customers who are wanting to engage with the bank about keeping these branches open, rather than being presented with a done deal and fait accompli after the branch doors are locked,” he said.

A CBA spokeswoman said the bank had made the “difficult decision” to close the Molong and Blayney branches, which had reported 45 and 37 per cent drops in transactions, respectively, over the past five years.

“We understand the decisions … are disappointing to the local communities,” she said.

“To support these two communities, we will provide a community banker to trial new ways of working together and we will visit local Australia Post facilities to review services and look for areas to make improvements.”

Mr Gee said regional banks were being closed despite a surge of people to rural towns since the pandemic began. Australian Bureau of Statistics figures show net migration to the regions was 43,000 last year, up from 18,900 in 2019. Mr Gee there was a growing case for the government to ­intervene.