Commonwealth Bank (CBA) has announced the closure of its Buderim branch in Queensland’s Sunshine Coast by the end of this month, 31st May. This move contradicts CEO Matt Comyn’s commitment to halt all regional bank closures until December 2026.

Despite assurances from CBA to refrain from regional closures until 2026, the closure of the Buderim branch stands as evidence to the contrary. The decision, which inconveniences small business owners and elderly patrons in Buderim, advises customers to use Bank@Post in Buderim or travel to Nambour for the nearest CBA branch.

The Australian Bureau of Statistics uses the University of Adelaide’s Accessibility/Remoteness Index of Australia (ARIA+) to justify this closure. The ARIA+ index reclassified the Sunshine Coast from Inner Regional to Major City between 2016 and 2021, citing population growth. However, this reclassification fails to consider the discrepancy in service access between regional and metropolitan areas, contrary to the index’s purpose.

Evidence does not support the ARIA+ index’s assumption that larger populations equate to increased service provision. Despite the fact that government departments classify Buderim as a regional area, the CBA’s decision disregards this designation.

Journalist Dale Webster exposes CBA’s failure to uphold its commitment and accuses the bank of manipulating definitions to serve its own agenda. Webster’s report on the closure of regional banks in Australia sheds light on the CBA’s betrayal of trust.

Westpac’s announcement of a three-year moratorium on regional branch closures sets the precedent for CBA’s decision to close the Buderim branch. The Senate enquiry into bank closures in regional Australia prompted this move, indicating a temporary shift in behaviour rather than a fundamental change.

Research Director Robert Barwick suggests that the actions of the CBA reveal a lack of sincerity on the part of banks and emphasise the necessity for regulatory intervention. Barwick supports the establishment of a public postal bank as a means to promote competition and address the issue of banking service withdrawals in regional areas.

The Senate enquiry’s report, scheduled for release on May 16, is expected to shed further light on this issue.

Editors Publicspectrum

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