Inquiry into regional bank closures flagged

Regional bank branches have closed in massive numbers in recent years. Now, a Nationals senator is asking why.

The Cobden NAB branch is among the regional bank closures this year.

Regional banking could come under the scrutiny of a parliamentary inquiry amid the ever-burgeoning number of branch closures in the bush.

Nationals senator Perin Davey is spearheading the push to put the banks under the microscope over the services they provide to regional Australians.

Since the beginning of the Covid-19 pandemic, about 300 branches have closed nationwide, figures from banks and the Finance Sector Union have shown. Others have closed temporarily, while hundreds of ATMs have been removed.

​In February this ​year, NAB removed the moratorium on regional banking closures that had been in place since 2019, shutting down six branches: Cobden and Balmoral in western Victoria, Dorrigo and Blayney in NSW, and Bargara and Murgon in Queensland.

The Commonwealth Bank also closed branches in Finley and Rainbow this year. None of the big four have ruled out further closures.

Senator Davey said while closing regional branches was a cost-cutting measure for the banks, it “leaves people high and dry” when few other options are available to them.

She said Australia Post filled some gaps, but couldn’t provide the full range of banking services the way a bank branch could.

“If someone wants to pursue advice about a home loan, for example, there’s still a lot of people who like to sit down face-to-face,” she said.

“The question is how can we ensure that the full range of banking services are available in the regions … is it a matter of saying to CBA, ‘you need a branch in every 200km radius’, or can we do a banking services model similar to government services offices?”

Meanwhile, Korumburra’s last remaining bank branch has been saved from closure after community outcry.

Bendigo Bank backflipped on its planned closure of the South Gippsland town’s branch.

Korumburra customers had been given a ‘use-it-or-lose-it’ ultimatum when the closure was delayed by three months, with community members urged to “support the bank with their banking business”.

Bendigo Bank has closed 27 branches in the past five years