Banks promise no regional branch closures before 2027

Chairman of the Country Mayors Association of NSW (CMA) mayor Rick Firman OAM has welcomed an undertaking by the Big Four (banks) to keep regional branches open until at least mid-2027.

“The announcement that the Federal Government has struck a deal with the Commonwealth Bank, NAB, Westpac and ANZ to halt regional bank closures until at least July 2027 is good news for rural and regional Australia,” Mayor Firman said.

“Banking services are integral to the economic growth of any community. Australia Post is often left to fill the gaping holes created when banks close, and they do their very best, but no-one could ever consider that they are an adequate replacement for a full-service bank.”

According to the Australian Government, about 36 per cent of bank branches in regional Australia have closed since 2017, leaving many communities without access to a full suite of banking services. The banks have increasingly relied on Australia Post to provide basic banking services like withdrawing cash or checking balances. Banks are also relying on customers turning to self-service, by choosing to conduct all their banking online or via phone, an approach that is creating difficulties for older residents of rural communities.

“Online, phone and Australia Post options do not adequately fill the gap left when a bank in a rural or regional community closes,” Mayor Firman said.

“Banks are far more than storage locations for people’s money. They are the places small businesses go to talk about expansion, they are where farmers go to talk about purchasing new equipment or increasing their operations, they are the places people turn to, to help make decisions about buying a home or investment property and of course they employ local residents.”

“It is baffling to consider that at a time when many regional locations in Australia are basking in a post-COVID population growth spurt, that banks, the backbone of a regional economy are still contemplating closures.”

The package of commitments from the banks includes:

– A moratorium on branch closures for two and half years: NAB has committed to a new moratorium on regional branch closures, with CBA and Westpac extending their existing moratoriums. These commitments build on the conditions imposed by the government on ANZ and Suncorp and ensure no regional branch closures before July 31 2027.