The major Australian banks have agreed to a two-and-a-half-year pause on the closure of regional branches in a move to preserve face-to-face banking services outside of major cities. The federal government has officially imposed a moratorium on these closures, effective until July 2027, in a bid to address the decline in banking services across regional areas.
Since 2017, approximately 36% of bank branches in regional Australia have closed, leaving many communities without essential in-person services. This decision follows a commitment by the National Australia Bank (NAB) to keep regional branches open, while the Commonwealth Bank and Westpac have extended their existing agreements to maintain their regional presence.
Previously, the Australian and New Zealand Banking Group (ANZ) had already imposed a similar moratorium following its acquisition of Suncorp, further demonstrating the banking sector’s shift toward regional stability.
Treasurer Jim Chalmers emphasized the importance of supporting regional communities, stating, “If we want a strong national economy, regional Australia must be a significant part of the story. That includes ensuring banking services remain accessible to businesses, workers, and residents in these areas.”
Chalmers also acknowledged that face-to-face banking remains vital for many Australians, particularly those in rural areas where digital banking alternatives may not be feasible.
In addition to the branch moratorium, the Labor government has secured agreements with major banks to increase banking services available at Australia Post outlets, known as Bank@Post. Commonwealth Bank, Westpac, and NAB have committed to this initiative, and ANZ has joined the scheme as well. Discussions are underway with Macquarie Bank and HSBC to also join the service.
“This agreement strengthens the future of Bank@Post and ensures that customers in rural and regional areas will have continued access to banking services,” Chalmers added. “While there is still work to be done, these announcements represent significant and impactful progress in securing banking services for regional Australia.”
Australian Banking Association (ABA) CEO Anna Bligh reaffirmed the sector’s commitment to regional customers, acknowledging the shift toward digital banking, but underscoring the need for accessible face-to-face services. “This is a major step to ensure that regional Australians can still visit branches and access banking services if they choose,” she said.
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