Regional banking: Senate inquiry into banking closures to continue in 2024

More than 70 banks closed in regional Australia this year. See where they closed and the banks on the chopping block in 2024.

Regional bank closures have topped the 300-mark since 2021 as a Senate inquiry into the contentious issue aims to conclude in the first half of next year.

The inquiry’s instigation provided a stay of execution for 10 branches earmarked for closure including the Commonwealth Bank’s presence in Bright and Junee.

Westpac put on hold eight closures including its Sale branch pending the outcome of the inquiry.

Westpac put on hold eight regional bank closures pending the outcome of the Senate inquiry. Picture: Roy VanDerVegt

But there were still 72 regional closures nationwide in 2023 with NAB having the most at 41 in towns including Maffra, Alexandra, Inverloch, Jeparit, Tatura, Kilmore, Morwell and Ocean Grove.

It followed 131 and 104 closures in 2021 and 2022, according to data supplied by independent researcher Dale Webster, as banks maintain a push to transition customers to online services.

Junee Licorice & Chocolate Factory owner Neil Druce welcomed the Commonwealth Bank’s decision to stay open until 2026. Picture: Andy Rogers

But Junee has ended the year as the big winner with a commitment from CBA to remain open until 2026 in a move described by businessman Neil Druce as a “really positive thing” from the bank that planned to shut its doors in March.

He is one of the town’s biggest employers at his Junee Licorice & Chocolate Factory and fronted an inquiry public hearing held in September.

Mr Druce said a follow-up visit to Junee from CBA staff had also provided a boost that the bank could remain long term.

‘There were still concerns around how they would evaluate how much business they were doing in town,” he said.

“Someone might do business at the Junee bank, but their account is in Wagga.

“There is real value in putting together the logic of how it all works.

“Just kicking up a stink has some impact, but I wouldn’t advise it.

“When there are 6420 people in your shire and they don’t have a bank, you are starting to look at some fairly major inconveniences.”

Senator Gerard Rennick is part of the inquiry looking into regional bank closures. Picture: Gary Ramage

Senator Gerard Rennick, who is part of the inquiry that held its first public hearing in Sale in March, said there was a better solution than the government’s preferred option of having banking services in post offices.

“The government is pushing that post offices can do the work of branches,” he said.

“I completely disagree with that and I think we need an entirely new government bank that provides not just banking services, but also insurance services.

“We get it, myself included, 80 to 90 per cent of what I do is online.

“But there are times I want to go and get face-to-face services.

“Older people just can’t use technology.

“Small businesses still need cash and a lot of people are holding onto cash out of sheer stubbornness.”