Bank says it won't close any more branches while inquiry is underway
Commonwealth Bank has said it will pause branch closures while a parliamentary committee looks into the reasons for the closures and their impact on the community.
All of the big four banks have closed branches in recent years, and scores of branches have been closed in the last six months, according to The Australian.
The branch closure issue was referred to the Rural and Regional Affairs and Transport References Committee last week, and a report is scheduled to be completed by December.
The committee will investigate concerns about the impact branch closures may have in regional areas and towns. It is accepting submissions on the issue until March 31, The Australian reported.
A CBA spokesman told the publication that, following a request from the committee, the bank wouldn’t close any more branches “while the inquiry is underway in 2023.”
“As an additional sign of good faith, while the inquiry is underway … CBA will postpone the closure of two branches already announced. We continue to welcome constructive engagement with government, industry and communities – an approach demonstrated by our recent work with all members of the Regional Banking Taskforce,” the spokesman said. “CBA looks forward to assisting the inquiry, and continuing to engage with our customers and communities, as we collectively respond to the digitisation of the economy and banking services.”
So far, CBA is alone among the majors in its pledge to pause branch closures. Spokespeople for National Australia Bank and Westpac declined to comment on the issue, according to The Australian.
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A spokesman for ANZ told the publication that the bank “is considering the matters raised in the Senate inquiry’s terms of reference and will engage constructively with the inquiry.”
As part of its proposed acquisition of Suncorp Bank, ANZ has committed to no net job losses at Suncorp Bank in Queensland for three years, and has vowed not to close any Suncorp branches during the same period. However, ANZ has not made that pledge regarding its own employees and branches, The Australian reported.
Westpac is shuttering branches as part of a strategy to merge the locations of its brands, including St George Bank, Bank of Melbourne and Westpac. The lender has already co-located more than 30 branches, with plans to co-locate 100 more over 18 months, The Australian reported.
Banks have increasingly closed branches as more customers shift to digital tools. Data from the Australian Prudential Regulation Authority showed 4,014 bank outlets providing “branch level service” as of June 30, 2022, down from 4,323 a year earlier. The number of locations providing “branch level service” has plummeted nearly 30% since 2017, The Australian reported.
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