Regional Australia responds to Jim Chalmers bank branch closure moratorium

Jim Chalmers has announced a regional bank branch moratorium. But regional Australia says there’s still holes in the system.

Australia’s Big Four banks have agreed to no more branch closures until mid-2027 in a move described by a southern NSW farmer, who fronted a senate inquiry on the issue as “kicking the can down the road”.

NAB has joined Commonweatlth Bank and Westpac in committing to the two-and-a-half year moratorium.

As part of an acquisition of Suncorp ticked off by the federal government last year, ANZ also agreed to a freeze on regional bank closures for three years.

Junee farmer Tony Clough, who spoke at the senate inquiry when it met in the town 18 months ago, was cautious in his support of the decision announced by Federal Treasurer Jim Chalmers on Tuesday.

“They’re just procrastinating at the moment and I think that is because of the flak they’re copping,” he said.

“They will continue to lay low because the banks don’t want bad publicity.

“They get a bit of it, but closing branches is not a good option.

“It’s well and good for them to force us onto internet or online banking, but it’s not that simple.

“Where I am right now I’ve only got one bar of service.”

Junee successfully rallied to keep its only bank, the CBA, open after it had been slated to shut in late 2022.

Omeo is one of many small country towns stripped of banking services.

East Gippsland Shire was one of several municipalities in Victoria to make a submission to the senate inquiry.

Mayor John White said several towns and hamlets across East Gippsland were now without physical bank branches, with larger regional centres also witnessing service cutbacks.

“A town like Omeo is a good example of how the Big Four pulling out has really hit the community,” he said.

“When the tourist season rolls around, the population grows four-fold, five-fold and communication coverage for eftpos and online banking is patchy.

“At least in a bigger city, you can go to an ATM or a bank, get your cash out and avoid the card fee.

“In some regional areas now, there’s no way of avoiding a bank fee - even though your using your own money, not credit.”

Crossbench senator Gerard Rennick, who sat on the inquiry, said the government’s response was “pathetic”.

“We need banks reopened,” the Queensland independent senator said.

“It’s not enough to give a short-term excuse.

“Ultimately we need a public bank like a former CBA along with a government insurance office that offers banking and insurance services at affordable prices.”

Federal Treasurer Jim Chalmers. Picture: NewsWire / Martin Ollman

Dr Chalmers said the federal government recognised maintaining face-to-face banking services was essential in rural areas.

“Banks have a responsibility to regional Australia, and we’re making sure that they’re that they are meeting their responsibilities,” he said.

“Since 2017, we’ve seen 36 per cent of bank branches in regional Australia close, and we are taking action to arrest this decline in regional banking services.”