AUSTRALIAN BANKS ARE GOOD CORPORATE CITIZENS - NO NEED FOR AMERICAN-STYLE COMMUNITY SERVICE OBLIGATIONS Sydney, 31 July, 2000:The Australian banking and financial services sector does not believe that another layer of regulation - such as the American-style Community Reinvestment Act - is needed in our modern, competitive, safe and secure financial system. Jeff Oughton, acting Chief Executive Officer of the Australian Bankers' Association, says Australians do not need another piece of legislation that has been the subject of criticism in the United States and which is simply not needed in our own country. "What banks don't agree with, like many other businesses in this country, is being directed by governments to act in a non-commercial manner by imposing constraints on their operations. "If services like banking and finance, transport, education or health care can't be made available on a commercial basis, or people can't afford them, then it becomes a government responsibility to ensure adequate access to these services. "This is done by using the money collected from taxpayers, such as banks, other businesses and individuals, to provide those services free of charge or on a subsidised basis." Mr Oughton said calls for a community service obligations requiring banks to provide a minimum level of services to regional and rural Australia are frequently calls for a minimum number of "bricks and mortar" branches. "This ignores the facts - the vast majority of customers are now receiving their banking services in many new innovative ways such as ATMs, EFTPOS, the internet, telephone banking, agencies and in-store and supermarket branches as well as face to face service in ways that are sustainable for the industry. The Commonwealth Government has recently picked up this lead, and is now supporting the Regional Transactional Centres that provide a multiple range of services, including banking in rural and regional Australia." Mr Oughton said banks are good corporate citizens - just some examples include: The industry is a major employer, currently training and developing around 150 000 people; Each year, as Australia's largest taxpayers banks pay hundreds of millions of dollars in tax (or the equivalent of over one in every ten dollars collected by the Commonwealth Government in company tax); Banks also directly help many charities each year - either by millions of dollars of donations or other forms of assistance; Banks help their local communities by supporting local sporting clubs and associations, funding education and sponsorship opportunities, and helping young people improve life skills. Mr Oughton explained that community service obligations are not the answer. "Government imposed obligations could put at risk our safe, sound, and innovative banking and financial sector - a critical part of Australia's continued economic and social development. "It also does not recognise the major contribution banks already make to the community today." . For further information contact: Heather Wellard ABA PR Phone: 02 8298 0411 Mobile: 0409 830 439     ENDS July 31, 2000, 11/00