Bank branch closures: Senator from the South West calls for inquiry into branch closures affecting the region

A Federal politician who grew up in the South West was one of two senators who earlier this month initiated a Senate inquiry into regional bank closures, as calls grow across the country to halt further closures to country banks. Manjimup born-and-raised Slade Brockman and Queensland’s Gerard Rennick — both Liberal Party senators — moved a motion on February 8 to refer banking closures to the Rural and Regional Affairs and Transport References Committee. It will be the first Senate inquiry into regional banking in almost 20 years, since the Money Matters in the Bush inquiry handed down a report with 33 detailed recommendations in 2004. Since then, country branches have continued to close at a more rapid pace than their metro counterparts, highlighted by the falling number of regional branches across Australia, which dropped from 2500 to 1900 between 2017 and 2021. The closure of these 600 branches represents more than half of the national bank branch closures from 5800 to 4500 branches over the same four-year period. South West towns have not been immune to these closures. In the past five years alone the big four banks have closed their doors in Waroona, Harvey, Australind, Bridgetown, Bunbury, Dunsborough, Collie and Augusta. Bridgetown’s Commonwealth Bank closed its doors in September 2019, and Donnybrook only has one bank — a Bendigo Bank — which is open five days a week. Bankwest’s Manjimup and Bridgetown branches are open three days a week each, as are the Margaret River and Dunsborough branches. The Busselton branch is open four days a week. Further afield, Jerramungup, Kondinin, Wyalkatchem, Three Springs, Morawa and Wagin have lost their brick-and-mortar banks — the loss of the Three Springs branch meaning the town’s closest bank is now 150km away in Geraldton. Westpac’s York branch — WA’s oldest bank — closed its doors in 2019. Westpac Bank shut its doors in two more South West towns in September last year, closing its branches in Bridgetown and Collie in December, ahead of other branch closures further afield in Tom Price in the North West and the Wheatbelt town of Wongan Hills. The four WA closures take Westpac’s total branch closures across Australia to 225 branches axed since January 2021. Westpac this week confirmed the closure of its Carnamah branch would go ahead as planned on Friday, despite the new Senate inquiry and the calls to halt all branch closures until the report can be handed down. In encouraging all regional and rural banking customers to submit their views to the inquiry, Mr Brockman said access to banking services in any community was “vital”. “Our small regional communities face disproportionate impacts due to physical bank branch closures,” he said. “Put simply, unreliable telecommunications in the bush mean that the need for cash is more prevalent and online banking less accessible. “Even with reliable telecommunications, businesses, families and older residents have limited alternatives if the one bank in town closes.” This new inquiry follows on from the Regional Banking Taskforce, which was launched when the Liberal Party was in government. The taskforce handed down its final report in September, outlining seven key recommendations to help improve banking regulation and services, and provide more support for country customers. Mr Brockman said he hoped the inquiry would be focused on solutions that will work well for banking providers, while ensuring regional communities have access to banking services. His calls have been backed by fellow WA Liberal Senator Dean Smith, who has called to halt any further branch closures until the inquiry has released its findings later this year. Mr Smith said regional banking outlets not only provide an essential service, but also give people a sense of security and optimism in their town. “Local banks are one of the core components of regional communities and their closures badly hurt residents and businesses,” Mr Smith said. “From Derby to towns in the South West, I have seen first-hand how a physical branch closure, or reduced operating hours, has a negative flow-on effect to the entire community.”