Simply walking away’: Banks face branch closure crackdown as Senate probe exposes failures

New Daily
May 27, 2024


Major banks have been slammed for closing hundreds of regional branches.



The federal government is being urged to pursue a crackdown on big banks closing branches in regional areas after a Senate probe called for cash to be considered an essential service.

A highly anticipated report into the hundreds of branches major banks have closed across the nation was dropped quietly by the Senate committee on regional affairs last Friday.


It recommended a series of reforms to protect communities from branch closures, amid expert fears that many Australians are being “left behind” by the rise of digital banking.

Namely, the committee said access to cash should be considered an essential service, that the government should consider a new publicly owned bank, and that new roadblocks be created to prevent the big four from closing regional branches without approval.

‘Strong stance’
RMIT Associate Professor Angel Zhong, who had followed the inquiry closely, said the committee had taken a “strong stance” to protect access to physical cash and banking.

Zhong said calls for a mandatory code that would require banks to consult with local communities and government before closing a branch should be adopted by government.

“It strikes a better balance between protecting the interest of both taxpayers and regional Australians,” Zhong said.

‘Ongoing need for cash’

The Senate probe was set up over concerns that swathes of physical bank closures in recent years were leaving regional communities in particular without convenient access to cash.   


More than 800 branches have been closed in regional areas over the five years to June 2023, according to figures from regulator APRA.


Meanwhile, research has shown that a sizeable minority of Australians still rely on physical banking and would be left without adequate services without branches, with banks shuttering locations in a bid to cut costs.

One bank, Macquarie, even moved to stop offering cash to customers entirely this year.   

The Senate committee agreed there was an “ongoing need for cash” and that characterising physical currency as an essential service could prevent banks from ditching it entirely.

“Along with an increased need for cash, regional and remote communities are more dependent on face-to-face services,” it said.

“Vulnerable residents and small businesses may be left ‘high and dry’, or forced to drive hundreds of kilometres to the nearest bank to complete essential and basic financial tasks.

“Australia’s banks are failing to take these impacts seriously. In many cases, banks are simply walking away from communities,” the committee also said.


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Council of the Ageing chief executive Patricia Sparrow urged the government to “immediately action” the essential services call and another that called for an expansion of Australia Post’s Bank@Post service to ensure all major banks were participating.

“This is an important step towards recognising that every Australian needs and deserves access to banking services,” Sparrow said.

Public bank

One interesting recommendation in the report was a call for the government to review setting up a publicly owned bank that could service regional communities indefinitely.

It wouldn’t be the first time the government had owned a bank; the Commonwealth Bank was originally taxpayer owned but was privatised in 1991 under Prime Minister Paul Keating.

Zhong said public banks have been successful in other countries at promoting specific goals like financial inclusion and economic development, such as Kiwibank in New Zealand and KfW in Germany.

“[A] publicly owned bank in Australia could be viable if funding from the government can be sustainable,” Zhong said.

“However, research shows that government-owned enterprises tend to be associated with lower operational efficiency.”

whiteknight wrote on May 29^th, 2024 at 12:50pm:


No we don't. If we did, the banks would keep them open. What we actually want is cheap banking services.

We don't want a cashless society.   

It's not about what " we want" it's about what our leaders believe we should have.

Of course the banks will gorge a bigger profit but I tend to think it goes much further.

The government wants to see where and how you earn money and perhaps more so, with whom you spend it and on what.

The fact we a squeeze is of no concern to the banks or politicians.

SadKangaroo wrote on Jun 2^nd, 2024 at 9:04am:


The banks are 'banking' more and more on the  post office to fulfil the banks community obligations.  In the time since postpay started, the banks have increased the rates of closure of regional branches,  all for the sum of about $90m a year they pay to Australia Post.  The same closures have increased the banks profits by about $30b in that same time.  To top it of, as branches close in regional area, the cost of transporting that cash, where it used to be shared,  is now left to Australia Post to cover.

SadKangaroo wrote on Jun 2^nd, 2024 at 9:04am:


Our ANZ bank (which is about to close) had always said if we need larger amounts of cash, to book it in or phone ahead so they have a few days to get the cash for you.
A couple years ago I went in for $5,000 and it was like pulling teeth!
The horrible bank teller started telling me off.
It was the first time I needed more than the $1000 allowable from the atm and went in the branch to get it.
She went on about how I did this before … I said in a puzzled stern manner… this was the first time and that she has me confused for someone else!
Funny enough… I’ve never seen her at that branch since. Because I went in next time ready and armed for any other false accusations.
She must’ve been bitchy to many other customers that may have complained.
Hubby has said a few years now to change banks.
I’m starting the transition soon over to a community bank. I’ve heard there is a long line of new applicants at these Bendigo banks!

I’m still of the opinion if we feel coerced or encouraged to go digital with money … don’t! Because it’s the excuse for closing down more banks and then we have less teller or face to face service. Is that what we really wanted?

And here today… in the beautiful Mornington Peninsula…. A few holding up placards… people toot horns and give thumbs up