Banking

Private banks are abandoning rural Australians at an alarming rate and are relying on public-owned infrastructure – namely the Australia Post network – to plug the local service deficits left in their wake, Katter’s Australian Party Leader and Traeger MP Robbie Katter has said. Speaking following news that Westpac would close its branches in Cloncurry, Tully and Ingham while NAB would depart Longreach in the coming months, Mr Katter said there was a growing onus on governments to intervene in the growing failure of banks to service the regions.

“There is not one bank still open in our local area. How much cash will the supermarket give me? So far I’ve only asked for $100 each fortnight because there are still transactions to be paid in cash. Now for Christmas and gift giving I need much more because after two operations this year I’m not very mobile so cash will be for gifts.” ... Lack of access to a bank or ATM adds a layer of complexity to this time of year that our politicians just don’t seem to be able to fathom.

Despite agricultural commodity prices retreating last month to the same level as November 2021, many Australian producers are seeing their most profitable period in living memory as 2022 draws to a close. Released on 19 December 2022, NAB’s December Rural Commodities Wrap reports the bank’s Rural Commodities Index was down 2.6% in November on the back of increasing volatility in livestock and grain markets.

The Federal Government’s Treasury Department now has in its possession pages of first-hand accounts from bank staff admitting that they have been working under orders to move customers away from face-to-face banking and on to digital channels ... It is the first time hard evidence has been available to prove these long-suspected practices exist, yet the information, provided to the Regional Banking Taskforce through the Financial Sector Union, was ignored by the Government in its final report.

Animal protein producers and processors face an “inflection point” with a need to respond to structural changes in the market even with production levels and prices likely to remain elevated next year, according to a new report by agribusiness banking specialist Rabobank.

The number of banks closed in regional Australia in the six weeks since the Albanese Government quietly released the Coalition’s Regional Banking Taskforce final report is comparable to a dam opening its spillways. The blame for the acceleration – at least 71 branches across all states and territories – can be laid squarely at the feet of the two opposition MPs who led the inquiry, Michael Sukker and Perin Davey, and Assistant Treasurer Stephen Jones, who released the report.

Patricia Gill. Denmark's NAB branch will close February 9. Denmark Chamber of Commerce president Chris Langslow called the closure disappointing, particularly for small businesses and retailers/hospitality businesses which required cash and cheques.

Australia's banking regulator has been significantly over-stating regional branch numbers for decades due to false reporting by banking institutions. The Australian Prudential Regulation Authority (APRA) became aware of the errors in May 2021 and has been quietly correcting the hundreds of instances where banks have claimed they are providing full branch services – including the face-to-face provision of cash – but have not been.

Australia's banking regulator is picking and choosing which banks it is allowing to get away with breaking the law by misreporting whether their sites offer cash service provided by a teller. Errors in hundreds of minor and foreign bank sites included in the Australian Prudential Regulation Authority’s points of presence data for years, even decades, have been corrected over the past 17 months after being exposed by The Regional in May 2021.

Rabobank's Marcel van Doremaele said while assessment of damage was still in a very early phase, farmers would be dealing with a range of issues including damage to grain and horticulture crops, as well as pasture and feed. In addition, he said, there would be impacts on summer crop planting programs, disruptions to milking, as well as flooded sheds and damage to other farm infrastructure, machinery and access roads. "Added to this, there will be logistical concerns in relation to harvest and getting livestock to market,” he said.

The release of the Australian banking regulator’s annual points of presence data this week will be an integrity test for both its chairman Wayne Byres and Federal Treasurer Jim Chalmers. The Australian Prudential Regulation Authority (APRA) and Treasury are both in possession of a list of 149 bank sites that do not meet the legal definition of a branch under federal legislation. Most of them have been falsely listed in government data by their Australian and foreign owners for years.

Finance Sector Union national secretary Julia Angrisano said the union is calling on the Federal Government to inquire into the provision of local banking services, particularly in regional areas and supported calls for a moratorium on regional bank closures.

Regional Australians found themselves as the butt of a nasty joke at weekend, with both the new Federal Government and the Opposition treating them like idiots over the critical issue of bank closures. In the ultimate dodgy trick, the final report in to the Taskforce into Regional Banking was snuck out at 4.52pm on Friday evening before a long weekend by the Albanese Government despite the report being a Coalition document overseen by two shadow ministers (Michael Sukkar and Perin Davey) whose current portfolios have nothing to do with treasury, finance, business or regional Australia.

The Regional Banking Taskforce came together for meetings in Sydney, Orange, Mildura and Canberra to hear and discuss how bank branch closures have impacted individuals and regional communities, and to work collaboratively to identify possible solutions ... The Taskforce’s final report made 7 recommendations ...

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 Chief Executive Officer of an Aboriginal corporation in Tennant Creek has labelled Westpac’s sudden closure of its branch as an abandonment of the Barkly’s Indigenous community. Papulu Apparr-Kari Aboriginal Corporation (PAK) has been a long-time customer of Westpac, also helping out its Indigenous customers without identification to use its bank services.

Regional Australians angry over continued bank closures have a chance to have their voice heard in federal parliament. The Regional’s Australian parliamentary petition calling for an immediate moratorium on closures and a new banking inquiry has been approved and can be signed online until 12.29am on October 6. It comes as the number of regional ‘big four’ banks looks set to slip below 1000 by the end of the year, a reduction of nearly two thirds of their network since 1975.

Heritage Bank has announced the talented photographers who will share in a massive $50,000 prize pool as part of its 2022 Photographic Awards. The annual Heritage Bank Photographic Awards are now in their 34th year and are one of the most lucrative, and longest running, in the country.

I have spent more than a year counting banks. It’s not an introduction to a story I could have foreseen myself writing 12 months earlier but when News Corp started cutting jobs in the rural mastheads, I found myself with time on my hands and a lot of unfinished business ... The “big four” (ANZ, Commonwealth, NAB and Westpac) started pulling out of regional Australia more than 30 years ago and one of the obstacles to reporting on this has been that there still isn’t a clear picture of the scale of closures.

Casterton, Grenfell, Home Hill, Nathalia and Toukley. Five Australian towns that were until recently set apart by one dubious achievement shared by no others: they had all lost a full hand of the “big four” banks – ANZ, Commonwealth, NAB and Westpac – since the 1970s. The days when all four branches were still open in these places was a time when banks were major employers in a town and the managers treated like kings because of the power they then had to make decisions locally that could make or break a business.