BANKING INDUSTRY COMMENTS ON RELEASE OF REPORT ON REGIONAL BANKING SERVICES
Sydney, 15 January, 2004: The Australian Bankers’ Association (ABA) is giving careful consideration to the report by the Parliamentary Joint Committee on Corporations and Financial Services on rural and regional banking services.
David Bell, Chief Executive Officer, ABA, said “The report is an important addition to the issue of banking services in regional and remote Australia, and to the issue of regional and rural services generally.
“By recognising that financial services like most industries have changed and cannot go back to the old days, the Committee’s report emphasises finding practical solutions to identified problems.”
The ABA will establish a Working Group to consider the recommendations relevant to the banking industry, and address each recommendation thoroughly.
“Our position remains, that where the banking industry can improve the contribution banks make to regional and rural Australia, then those opportunities should be taken.
“Already the banking industry is undertaking many initiatives identified in the Committee’s report, but the report provides an opportunity to review progress and consider new initiatives,” said David Bell.
“We will respond to the Committee’s recommendations, after further consultation with rural and regional stakeholders.”
Supplementary report : ATM pricing
The ABA notes the supplementary report attached to the Committee’s main report into regional and remote banking. The supplementary report comments on a proposal by banks, building societies and credit unions to adopt an Australian Competition & Consumer Commission (ACCC) and RBA recommendation to replace the existing ‘foreign’ ATM pricing arrangements with what is known as a direct charging model.
The banks, building societies and credit unions are currently finalising their ATM proposal that will be presented to the ACCC for authorisation.
The proposal supports the ACCC and RBA recommendation that a direct pricing model be implemented.
Once the proposal is lodged, it will then be considered by the ACCC.
Under this public process, the ACCC is obligated to consider the public benefits and detriments of applications before making a determination.
Importantly, the Act requires the ACCC to consider the impact of any proposal on identified consumer groups, including rural and regional consumers.
“Banks, building societies and credit unions will be seriously considering the views of the Committee as they finalise their ATM proposal to the ACCC,” said David Bell.
Background
The ABA made 15 recommendations to the Committee’s Rural Banking Inquiry. These were based on banks presence in rural, regional and remote Australia and the various initiatives they have in place to improve banking services in these areas.
In particular the ABA found that:
- the number of face to face banking locations in remote areas has risen in the past few years;
banks – including the ANZ, Commonwealth, National and Westpac – have made commitments regarding no further rural branch closures ;
many regional banks are expanding their bank branch and financial services network, adding to local employment;
banking services and programs for indigenous people are being expanded; and
there is a strong groundswell of support for improving financial literacy.
The ABA research shows that with few exceptions all communities in Australia have access to face to face banking within a twenty kilometre radius, while the exponential growth in electronic banking has benefited those able to access the new technology.
The industry has had accessibility standards in place since April 2002 that are world’s best practice.
For further information:
James Walker
Mobile: 0414 976 336 |