The Finance Sector Union says the Federal Government’s announcement of a moratorium on regional bank branch closures until mid-2027 is effectively a statement of the banks’ status quo, and fell way short of the required legislation to mandate that banks do the right thing.
“CBA and Westpac gave commitments to a moratorium on regional branch closures at the time of the regional bank hearings in the Senate last year. This announcement contains no new safeguards,” FSU National President Wendy Streets said.
CBA announced a moratorium until 2026, and Westpac announced an extension to moratorium to regional branches at least until 2027. (ANZ is tied to the Treasurer’s requirements around the Suncorp acquisition).
The union said the moratorium announcement did not cover smaller banks and mutuals, leaving thousands of regional customers out.
“We are troubled by what we have seen in recent months with smaller banks making significant announcements about regional branch closures.
“For example, BOQ has already closed 14 branches and the union has fears for the remainder of the 114 owner-managed branches it has bought back.
“And the People’s Choice bank are closing 20% of their network in April this year.
“This announcement does nothing to address that, it’s just more of the same from the Big Four.”
The FSU said the agreement struck between the Government and the major banks to increase regional services through Australia Post outlets was neither a replacement for banking, and was meaningless for banks with no branches in regional areas.
“Macquarie Bank has never had a retail network in Australia and HSBC has only ever had a sprinkling of branches in capital cities.
“This is not an announcement of broadening availability of cash in regional Australia.
“Auspost is not a bank and does not provide banking services to regional Australia. It’s only provides an ATM service: cash in and cash out.
“If the Government were serious about protecting regional bank customers it would introduce legislation. That’s the only thing that makes these banks change their behaviour. Otherwise they can walk away from agreements when it suits them.”
The union wants the Government to commit to the recommendations of the Senate Rural and Regional Affairs Inquiry into regional bank closures of May last year, to declare banking an essential service and develop a mandatory industry code.
Media contact: Rebecca Nicholson – 0409 216 053
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