Hugh Schuitemaker, Murray Pioneer

Further support measures are needed to ensure further closures to Riverland bank branches are avoided, according to the region’s Federal MP.

The Federal Government last week announced an agreement with banks to “ensure banking services remain available in the regions”.

Barker MP Tony Pasin said sustaining local bank branches was crucial for regional communities.

“Face-to-face banking services add to the vibrancy of regional towns,” Mr Pasin said.

“The decision to close branches is extremely disappointing not only for customers, but for the whole community who feel a sense of abandonment when banks pack up and leave town.

“In a period of record profitability for the Australian banking sector, the decision to withdraw services from regional Australia is unconsumable. The (Commonwealth Bank of Australia) has just reported a half-year cash profit well above expectations… but the Labor Government thinks they can fix the issue of regional banking closures by shifting banking services onto Australia Post licenced post offices.

“I don’t have a problem with this model where there is no other option, so long as the banks are paying a reasonable rates per transaction.

“However, in regional centres where branches are still required by the community, I believe banks should be reinvesting some of these record profits to maintaining regional bank branches, employing locals delivering face-to-face service.”

Federal Government data shows 36 per cent of bank branches in regional Australia have closed since 2017.

A statement on the matter said the Federal Government was “standing up for regional Australians, helping to secure the banking services they need and deserve”.

“More than banking, this is about keeping regional communities, that contribute so much to our national economy, connected and thriving,” the statement read.

“People are increasingly using digital banking and payment methods, but face-to-face services remain essential, particularly for people and small businesses in regional areas, where digital alternatives may not always be accessible or meet their needs.”

The package of commitments from the banks includes:

• A moratorium on branch closures for two-and-a-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 by these banks before 31 July 2027.
• New Bank@Post agreements: The government has asked the banking sector to increase its commitment to, and investment in, regional banking.

This article appeared in the Murray Pioneer, 19 February 2025.