Standing Committee on Economics, Finance and Public
Administration
Media release, 15 July 1998
COMMITTEE URGES BANKS TO DEMONSTRATE COMMITMENT TO BUSH BANKING
Now that the Australian Bankers' Association has given the lead, questions
remain about how its members respond to country bank closures.
The House of Representatives Financial Institutions Committee is pressing
the ABA for more details on its proposal to deal with the concerns of
rural communities on the loss of banking services. The ABA's proposal
was put to the Committee at a public hearing on Thursday the 2 July.
David Hawker MP, Chairman of the Committee, said, "We welcome the plan
as a positive step forward, but a lot still needs to be done. We want
to know that we will see actual results, which will benefit people living
in small country communities. Now there is a need for an action plan"
The Parliamentary Committee is investigating ways of ensuring regional
and remote sectors of Australia continue to have access to banking services.
"The Committee has taken the ABA's seven point plan at face value and
is interested in investigating the proposals in detail. Issues of particular
concern include the notification period for a branch closure, the education
of consumers in new technologies and the effectiveness of community consultation.
The banks' offer of six weeks notice of a branch closure has been criticised
as being too short and many people are dubious of the banks' promise to
consult with them. The Committee would also like to see some firm plans
in regard to the banks' proposal to ensure reasonable access to alternatives
when closing a branch, whether this be through third party agency arrangements,
franchised branches, community banks, common branches or bank kiosks.
Mr Hawker added, "The Committee has so far been very successful in raising
the profile of this important issue. While the recent seven-point proposal
put to the Committee by the Bankers' Association is evidence that the
banks are now aware of just how important bank services are to regional
and remote Australia, we want to see concrete steps forward, not just
visions of the future."
Release ends
15 July 1998
Further information:
David Hawker MP (Chairman) 02 - 6277 4837
Janet Connaughton (Inquiry Secretary) 02 - 6277 2375
e-mail: EFPA.Reps@aph.gov.au
Secretariat contact details:
The Secretary
Standing Committee on Financial Institutions and Public Administration
R1.121
Parliament House
CANBERRA ACT 2600
Telephone: (02) 6277 4587
Facsimile: (02) 6277 4557
Mobile: 0418 434 971
EMail: FIPA.Reps@aph.gov.
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