List of recommendations

Recommendation 1

2.153The committee recommends that the Australian Government adopt a policy recognising access to financial services as an essential service. To this end, it should commit to guaranteeing reasonable access to cash and financial services for all Australians.

Recommendation 2

5.39The committee recommends that the Australian Government commission an expert panel to investigate the feasibility of establishing a publicly owned bank. In investigating this, the panel should examine options including, but not limited to a stand-alone public bank or one associated with, and using the branch network of Australia Post.

Recommendation 3

5.54The committee recommends that the Australian Government urgently develop a mandatory Banking Code of Conduct or Customer Service Code (Code), incorporating a robust branch closure process, to be administered by a regulator with expertise in consumer protection.

The new Code would require financial institutions to:

undertake meaningful consultation with communities before a branch is closed;

prepare and submit a comprehensive report on the potential impacts of the closure and identify alternative financial services in the event of closure; and

implement and fully fund transition arrangements and ongoing support services which ensure access to cash and essential banking services following a closure.

5.55The committee recommends that the regulator would assess compliance with the Code before any closure is agreed to.

Recommendation 4

5.56In enforcing the mandatory Banking Code outlined in Recommendation 3, the committee recommends that the regulator be authorised to approve or defer any closure request. In deferring a closure, the regulator would be authorised to direct a bank to take certain reasonable actions, including to order further consultation or provide additional information to the regulator.

5.57The regulator should be provided with a range of penalties should a bank fail to comply with an order to defer closure, or with any other undertaking.

Recommendation 5

5.58The committee recommends that the Australian Government commission the Australian Competition and Consumer Commission to explore the barriers to customers switching banks, with a view to allowing those that open and/or maintain branches in regional, rural and remote towns to attract more business.

Recommendation 6

5.65The committee recommends the Australian Government establish the Regional Community Banking Branch Program (RCBBP). The objective of the RCBBP would be to help underwrite the establishment of ‘community bank' branches providing in-person banking services in regional, rural and remote Australia. Local communities would be required to raise their own capital as well, but the government contributions could help lower the required amounts. Consideration could also be given to using this fund to help enhance financial services available at Australia Post.

5.66To support the RCBBP, the committee recommends that the Australian Government establish a supplement to the Major Banks Levy to be levied on the major banks. Funds raised by the supplement must be hypothecated to provide funding to the RCBBP.

Recommendation 7

5.77The committee recommends that the Australian Government works closely with the banks and Australia Post, to require all major banks to have agreements with Bank@Post and to harmonise the terms of Bank@Post agreements to improve fairness and sustainability. Specifically, agreements should include increased deposit limits to support small businesses, provisions to facilitate identification verification, and to handle issues around temporary account closures or multiple signatory requirements.

5.78Major banks that do not put in place agreements with Bank@Post to deliver financial services should pay an increased supplementary levy as described in Recommendation 6.

Recommendation 8

5.83The committee recommends that the Australian Competition and Consumer Commission consider measures to protect access to personal and business banking services in regional, rural and remote locations. This may include, but not be limited to, proposing an authorisation to circumvent anti‑competitive laws such that banks can cooperate for the purposes of reducing the impacts of bank branch closures on regional communities.