Major Banks Commit to Halt Regional Branch Closures for Two and a Half Years
The major banks in Australia have agreed to halt regional branch closures for two and a half years following a government deal to support local communities and their banking needs.
The Commonwealth Bank (CBA), Westpac, NAB, and ANZ have officially committed to pausing regional bank closures for the next two and a half years. This decision comes after the federal government negotiated a deal with the major banks, following a troubling trend where nearly 800 branches have shut down since 2017.
Treasurer Jim Chalmers stated that the moratorium on branch closures until July 31, 2027, resulted from NAB's acceptance of a new agreement to keep its regional branches open. CBA and Westpac have also extended their previous arrangements, while ANZ had already committed to not closing any regional branches for three years post its takeover of Suncorp.
“We are taking action today to arrest this decline in regional banking services,” Chalmers remarked.
He noted the importance of a robust national economy, emphasising that regional Australia plays a crucial role. “That means making sure that banking services are available to the businesses, workers, and communities of regional Australia,” he added.
Chalmers acknowledged the growing trend of Australians opting for digital banking but stressed the necessity of maintaining face-to-face options for those who require them.
Additionally, the federal government has signed agreements with the major banks to boost services available at Australia Post outlets. CBA, Westpac, and NAB have reached in-principle agreements, with ANZ agreeing to key terms. Macquarie and HSBC are also set to begin negotiations with Australia Post.
Australian Banking Association CEO Anna Bligh described the agreement as a “major commitment” to keeping regional branches operational. “Banks are ensuring Australians can continue to access high-quality banking services no matter where they live,” Bligh stated. “While Australians continue to shift to digital banking and payment platforms, banks recognise that some customers still prefer face-to-face services.”
According to data from the Australian Prudential Regulatory Authority (APRA), nearly 800 branches closed in regional areas from June 2017 to June 2023, which accounts for over one-third of all regional bank branches. In spite of the major banks' commitments to regional service, branches elsewhere in the country are still declining.
APRA data revealed that Westpac had the highest number of branch closures among the major banks last year, with 66 closures within the 12-month period, followed by NAB with 53, ANZ with 39, and CBA with 32.
