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AAP
AAP
Business
Stephanie Gardiner

'Bloody-minded' banks under pressure to halt closures

Major banks have been labelled "bloody-minded" and "lazy" for shutting regional branches, as a Senate committee ramps up pressure to halt closures for the rest of the year.

A Senate inquiry into why banks are increasingly shutting shop in regional towns was launched last week after the closure of almost 100 branches since September.

Nationals Senator Matt Canavan, chair of the Rural and Regional Affairs and Transport References Committee, wrote to banks on Friday urging them to halt closures in an act of good faith to the inquiry.

The Commonwealth Bank said it would not shut any branches during the inquiry, which is due to report by December, and postponed planned closures in Junee, NSW, and Bright, Victoria.

Westpac Group, which has announced the closure of 20 regional and suburban branches across Queensland, Victoria, NSW, and South Australia, has not followed suit.

A spokesman for ANZ said it was considering the inquiry's terms of reference, while NAB has not clarified its position.

During a press conference with eight other Nationals MPs and senators on Wednesday, Senator Canavan again urged the banks to pause closures.

"I welcome the news that the Commonwealth Bank has heeded that call ... now the challenge is for those other banks to come up to the plate and listen to regional Australia," he told reporters in Canberra.

"Don't close these branches before those people get a chance to have their voice heard."

The inquiry follows the coalition government's Regional Banking Taskforce, which found farmers, small businesses and vulnerable people suffer when banks close as they are forced to travel long distances to get cash and manage their finances.

The task force recommended the Australian Banking Association strengthen community consultation and banks introduce closure impact assessments by mid-2023.

Darren Chester accused banks of fast-tracking closures before that deadline, including in his Victorian electorate which is due to lose a Westpac branch in Sale.

"Enough is enough. Stop being so bloody-minded, stop being so bloody lazy and start working with regional communities on solutions that will allow face-to-face banking to continue in our communities," he said.

Mr Chester said while banking was changing and more people were moving online, rural people continued to rely on face-to-face transactions and access to cash.

The inquiry will accept submissions until March 31 and will hold its first hearing in Sale on March 2.

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