ANZ and Suncorp’s merger has sparked significant public debate, as the Australian Citizens Party (ACP) leads the call for immediate government action to set conditions on the closure of regional banks. The ACP urges Treasurer Jim Chalmers to implement strong actions against ANZ for violating the merger conditions, particularly concerning the closure of its Katoomba branch. This situation highlights important factors for Australia’s banking industry, especially regarding community access to financial services and the potential for a public bank to address these challenges.
Upholding regional banking services
ANZ must maintain all regional branches for three years, as the Treasurer stipulated this as a key condition of the ANZ-Suncorp merger. ANZ has closed its Katoomba branch, prompting strong backlash from the community and political figures. Robert Barwick, the ACP Research Director, said, “This closure is clearly in breach of the spirit of the Treasurer’s conditions and arguably in outright breach of the actual conditions.”
Katoomba hosts around 13,000 residents and stands out as a regional town. ANZ redefined the town as a “major city” to circumvent the conditions set for the merger. Barwick expressed scepticism about the reclassification, stating, “Since when is a town with 13,000 people a major city?”
Community members have sparked significant protests and collected more than 15,000 signatures on a petition urging government action following the shutdown of the Katoomba branch. Recent actions show that regional communities are increasingly dissatisfied, as the removal of in-person banking services disrupts their daily lives. A recent Senate enquiry into regional bank closures reveals the negative impact of these decisions on community access to essential services.
Government action on public banking
Following ANZ’s actions, the ACP has outlined two clear demands:
- Revocation of the ANZ-Suncorp merger approval: The ACP calls on Treasurer Jim Chalmers to rethink his approval of the merger until ANZ halts the closure of the Katoomba branch. Barwick argued that ANZ’s “cavalier” neglect of the imposed conditions demands a strong response from the government. This situation carries significant implications—failing to uphold the established conditions could jeopardise public confidence in the government’s ability to oversee major financial entities.
- Establishment of a public bank: The ACP has urged Parliament to consider creating a public bank in response to the Senate’s enquiry. The recommended Expert Panel will assess whether a government-owned bank can deliver crucial services to underserved communities. The ACP recommends that this panel hold its inaugural meeting in Katoomba, involving local residents to assess their interest in transitioning to a public bank. The panel’s efforts will establish the groundwork for a People’s Bank that can rival the “Big Four” in service quality, especially in regional locations.
Modernising public financial services
The push for a public bank goes beyond addressing the immediate issue of local branch closures. This marks a major shift in how Australia delivers essential services, particularly as the government seeks to modernise and digitalise its public sector offerings. As Australia advances in its digital government transformation, it is essential to ensure fair access to services—both digital and physical.
A public bank can significantly contribute to this process by providing dependable and accessible banking services to every Australian, regardless of their geographical location. This year, Barwick highlighted that a public bank can “force private banks to compete on service,” ultimately improving standards across the industry.
A public bank would strengthen the government’s broader goals of improving financial inclusion, especially in remote and regional areas. This institution can protect against private banks ceasing service, ensuring every citizen accesses vital banking services through physical branches or enhanced digital platforms.
ANZ and Suncorp’s merger marks a pivotal moment for the banking industry and the Australian government. ANZ’s failure to comply with the conditions set by the Treasurer highlights the need for stronger regulatory oversight. The ACP proposes creating a public bank, offering a viable solution that aligns with the government’s overarching objectives for the public sector.
As Australia moves toward a more digitally integrated public sector, it is crucial to ensure that all citizens access essential services, whether delivered physically or digitally. The government must evaluate the potential of a public bank to address these needs and ensure that private institutions remain accountable for their actions.