‘Second-class citizens’: QLD calls for laws to protect regional bank standards

Eighteen Queensland banks have closed since September last year while another three are on the brink having been issued closure notices. SEE THE FULL LIST

Minimum banking service standards need to be written into law to protect regional towns from a spate of bank closures which have left some communities living like “second-class citizens”, a parliamentary inquiry will hear.

There have been 21 banks in regional Queensland closed or threatened with closure since September alone, including in Ingham, Laidley, Longreach and Cloncurry, though Westpac and Commonwealth Bank have agreed to a stay of execution of their branches for now.

The Senate committee into banking closures in regional Australia will head to Cloncurry on Wednesday.

An Australian Banking Association spokesman said banks were responding to changes in customer preferences, and that many banking services were available through Australia Post’s Bank@Post services.

AgForce boss Mike Guerin said businesses in some regions were being left struggling to find cash to put in the till, while towns were losing access to home loan experts and financial advice.

Westpac’s Ingham branch. Picture: Cameron Bates

He urged the government to consider legislating minimum banking services in the regions for “as long as cash remains legal tender”.

“We should be treated as equal to the cities,” Mr Guerin said.

“As long as cash remains legal tender, where you live in Australia shouldn't’ impact on your banking requirements.

“It’s got to the unfortunate reality in our view that these basic needs must be legislated.”

AgForce President Mike Guerin. Picture: News Regional Media

Queensland Senator Matt Canavan said banks had dropped the ball and that flexible service obligations should be considered.

“They’ve left towns all around the country high and dry with little or no access to vital services,” he said.

Westpac’s Gatton, Cloncurry, Ingham and Tully branches have all been given a stay of execution from closure since the inquiry started.

Queensland Senator Matt Canavan. Picture: NewsWire / Monique Harmer

Cloncurry Mayor Greg Campbell made a submission to the inquiry saying community groups hosting events would have to travel 240km to Mount Isa to access cash for cash register floats.

An Australian Banking Association spokesman said customers of more than 80 banks and financial institutions could continue in-person transactions via Australia Post’s Bank@Post services, while people could access cash through EFTPOS at many retail outlets.

“In relation to home loans mortgage brokers operate in many towns across Australia,” he said.

“Approximately two thirds of people use a mortgage broker. Digital mortgage services are also provided by most banks.

“Some banks provide mobile business bankers who visit customers on farm, at their businesses, and travel to customers’ homes.”

He said customers in regional areas were increasingly accessing banking through apps and internet services.

Originally published as ‘Second-class citizens’: QLD calls for laws to protect regional bank standards