Bank closures: NSW loses 31 banks since Regional Banking Taskforce report release

A federal government-instigated inquiry into the rural banking scene has been described as a “missed opportunity”.

Rural bank closures have accelerated in the past three months, independent research has found.

A total of 77 branches nationally have shut or issued closure notices since September, when the findings of a regional banking task force were handed down.

NSW has had the most closures with 32, followed by Queensland on 15 and Victoria with 12.

The recent run brings the total banks shutting nationally in the past two years to 258.

Farmer and small business frustration with centralised call centres featured strongly among the 400-plus submissions to the task force, which was assembled by the previous Coaltiion government.

The Commonwealth Bank and other “Big Four” banks are deserting small towns. Pic Annette Dew

Task force recommendations included banks publishing branch closure impact assessments from next year, Australia Post devising a solution for cash float and deposit needs of businesses and community groups and the creation of “fee-free” accounts for customers left feeling vulnerable by a closure.

National Farmers Federation vice-president David Jochinke. Picture: Nicole Cleary

National Farmers Federation vice-president David Jochinke said farmers were disadvantaged when a bank shut in their area.

“The touch points with a branch are nowhere near as high as they used to be, but access to an agri-banker in their close vicinity is extremely important for any successful business,” he said.

“By closing branches it does make that distance further which can put a lot of strain on farmers, especially when they’re faced with a tough season.”

Snowy-Monaro Council in southern NSW has had three bank closure announcements since the report was released and mayor Narelle Davis said the loss of banks at Cooma, Bombala and Tumut would be difficult for rural communities.

“It is the older community members who are most affected, but also our agricultural and commercial industries, who are always needing to negotiate with a bank,” she said.

“It’s really, really difficult for communities to adjust to those changes when banks leave.

“Especially when we’re forced to travel so far to physically go to a bank.Research into bank closures dating back to 1975 has been undertaken by Bendigo-based journalist Dale Webster, who has been recognised with a Walkley Award for her work.

“I began collating my own records because I got sick of the banks dodging questions about their branch numbers,” she said.

“As the first inquiry addressing this issue in 17 years, it was a missed opportunity and regional Australians deserved better.

“The banks held the majority of seats, made their own submissions during the consultation and then were involved in the drafting of the final report that started from the premise that branch closures were inevitable.”

Australian Banking Association’s response to the task force report said: “Australian banks understand that there are still customers who need face-to-face services and those who need extra support in transitioning to digital services.

“Banks are working directly with both personal and business customers to provide solutions that meet their needs.”