Member for Mallee Dr Anne Webster MP has backed a Senate Committee report into the impact of regional bank branch closures, which finds that private banks have failed regional Australians.

“The final report found that without regulatory intervention, banks will continue to close branches and communities will pay the price. More than one third of regional bank branch services – almost 800 in total – have closed in the 6 years to June 2023. Half of the automatic teller machines (ATMs) in regional Australia have also closed,” Dr Webster said.

The former Coalition Government established the Regional Banking Taskforce into the issue which came to Mildura in January 2022 and reported in September 2022. Dr Webster called for a moratorium on regional bank branch closures in February 2023, which the Commonwealth Bank accepted within a week.  Bendigo Bank nonetheless announced they would close their Warracknabeal agency in March 2023. Robinvale’s Westpac branch was spared closure in May 2023.  Several major banks had indicated that while the Senate Committee was investigating closures, they would self-impose a moratorium on further closures. The Nationals fear the moratorium will now lift without immediate action from the Albanese Labor Government.

“I agree with the Committee’s recommendation that regional Australians need reasonable access to cash and financial services.  The loss of services is so dire, we must seriously consider the Committee’s recommendation for a Regional Community Banking Branch Program comprising a public-private partnership to help local communities establish banking services. If that takes a miniscule increase in the Coalition’s 2017 Major Banks Levy, I support that because thus far regional Australians have only seen cuts, not improvements, from the money raised from the Levy.”

“The Rural and Regional Affairs and Transport References Committee report also recommends meaningful consultation on bank branch closures, which the Regional Banking Taskforce also recommended in September 2022. Time and time again I highlight that corporations and government services do not consult meaningfully with regional communities. Consultation is tokenistic at best with a premeditated and inevitable outcome.  Banks and other corporations alike that threaten a negative impact on regional communities need to both consult and compensate in meaningful ways.”

“Regional Australians must never forget that during the Global Financial Crisis the Reserve Bank issued $73 billion in bonds through a guarantee scheme which at its peak covered $170 billion of bank liabilities. The RBA later determined those guarantees were worth an implicit $1.88 to $3.75 billion to the major banks, or $2.32 to $4.62 billion in today’s terms. Banks have a moral obligation to support all taxpayers for that assistance and should stop cutting services in regional Australia.”