The Hon. Jim Chalmers MP, Treasurer, the Hon. Stephen Jones MP, Assistant Treasurer, Minister for Financial Services, Media Release, 3 October 2022
The Albanese Government welcomes the Council of Financial Regulators’ paper on potential policy responses to address the problem of de-banking in Australia.
De-banking, where a bank declines to offer or withdraws banking services to a customer, can have a devastating impact on businesses and individuals. It can also put a handbrake on competition and innovation in emerging sectors of the economy.
The paper was commissioned in response to the final report of the Senate Select Committee on Australia as a Technology and Financial Centre.
De-banking can increase the risks for affected businesses by forcing them to conduct transactions exclusively in cash.
It is often experienced by commercial customers perceived to be in high-risk industries, such as the financial technology, digital currency exchange and remittance sectors.
The Government is committed to promoting innovation and competition in the financial services sector and will continue to work with affected customers.
We would like to thank the Council of Financial Regulators, ACCC, AUSTRAC, the Department of Home Affairs and Attorney-General’s Department for the work they have done on this issue so far.
A Government response to the recommendations in the paper will be released in due course.
The policy paper is available on the Council of Financial Regulators website.