Regional bank closures: Federal government to examine branch axings

The federal government will investigate branch closures across rural and regional Australia by the big four banks.

Cobden’s National Bank branch is one of many to close across regional Australia in the past two years.

Rural Australia’s bank branch closures are finally under the microscope, with a federal government task force to investigate the matter.

Assistant Treasurer Michael Sukkar and NSW Senator Perin Davey will spearhead the task force, which will examine why the Commonwealth, ANZ, Westpac and National banks have closed rural branches in the past few years.

Community leaders across Australia have noted bank closures have accelerated since the first Covid lockdown measures were implemented in March 2020.

Regional Minister Bridget McKenzie said the Regional Banking Taskforce would examine how branch closures have affected those living in rural Australia.

“Having access to bank branches is vital for every community, particularly for residents who are unable to use online services to conduct their banking,” she said.

Senior representatives from the ANZ, Commonwealth Bank, National Australia Bank, Westpac, Bendigo and Adelaide Bank as well as the Bank of Queensland have agreed to work with the task force.

Senator Davey said the task force would bring together key banking and community leaders to find solutions to the growing problem.

“A task force is an important step forward because it will allow us to draw on the knowledge of the banks and businesses to find workable solutions to this issue,” she said.

“Banks and financial service providers have communicated to me a desire to find ways to service regional communities, and I look forward to exploring those constructive avenues through this task force.”

Representatives from other organisations such as the Australian Banking Association, the Customer Owned Banking Association; the Council of Small Business Organisations; the Australian Chamber of Commerce and Industry; Australia Post; and the Australian Local Government Association will also work with the task force.