The Australian Government has responded to the Senate Rural and Regional Affairs and Transport Committee report on bank closures in regional Australia. Background.
The response addresses the 8 recommendations from the committee’s report.
The government agrees with the following 2 recommendations in principle:
* “that the Australian Government commission the Australian Competition and Consumer Commission to explore the barriers to customers switching banks, with a view to allowing those that open and/or maintain branches in regional, rural and remote
towns to attract more business”; and
*”that the Australian Government works closely with the banks and Australia Post, to require all major banks to have agreements with Bank@Post and to harmonise the terms of Bank@Post agreements to improve fairness and sustainability. Specifically, agreements should include increased deposit limits to support small businesses, provisions to facilitate identification verification, and to handle issues around temporary account closures or multiple signatory requirements. Major banks that do not put in place agreements with Bank@Post to deliver financial services should pay an increased supplementary levy.”
The Government says it has secured new and updated agreements between all four major banks, Macquarie Bank and Australia Post for Bank@Post since the publication of the report.
The Government does not support the Committee’s recommendation that the Australian Government commission an expert panel to investigate the feasibility of establishing a publicly owned bank.
It has noted the 5 other recommendations.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
