February 23, 2022
Georgetown’s last remaining bank branch, the Bendigo Bank, has this week announced it will be closing its doors, leaving community members with a 400-plus kilometre round trip to get to their next closest bank.
Katter’s Australian Party Leader and Traeger MP Robbie Katter said there was no doubt that the closure was a prime example of market failure in the commercial banking sector industry.
“In my view, Governments have an obligation to intervene in the flawed situation that is currently hindering economic and population growth in not just the town of Georgetown, but what is seems is every region removed from the coast,” he said.
“For many years not only have the banks been diverting away from their bricks and mortar, but also the duty they hold to provide loans to those in rural and remote areas.
“Unfortunately for applicants, postcode discrimination exists from all major lenders and trying to get a loan in Georgetown is far more difficult than Townsville or Brisbane.
“These decisions are heavily dependent on postcode and are often no reflection on the suitability for an applicant’s overall security profile for a loan.”
Mr Katter said while postcode discrimination was present with, and without a bricks and mortar banking branch presence, the closure of the Georgetown’s last bank was symbolic of the bush’s long-term struggles.
“Towns cannot progress with this current discrimination, they simply cannot attract people wanting to secure loans to buy houses or businesses on such unreasonable terms,” Mr Katter said.
“On average, loan applicants in rural and regional areas face a far more stringent lending criteria that is unfair and for many, unachievable.
“The big banks will stand by their notion that they still do business in these small remote towns, however if you delve deeper, it is not that simple.”
Etheridge Shire Council Mayor Barry Hughes said the bank’s closure would have a significant impact on his community.
“Etheridge Shire Residents once again face an uncertain future with the impending closure of the only banking option for the region based in Georgetown,” Cr Hughes said.
“Rural and regional areas are fed up with this type of disregard for the economic sustainability across smaller remote and regional communities.
“Etheridge Shire in the past has worked closely with banking institutions to ensure that banking facilities remain open for business to the wide and varied business activities that sustain the region.”
Cr Hughes said, in the case of Bendigo Bank withdrawing its services, no opportunity for discussion was offered to the Etheridge Shire Council or the community to look at potential solutions.
“A blatant lack of common decency is at play right here in this instance, and once again we see the bad habits returning to this sector to inflict stress on regions already under pressure from the impacts of COVID-19 related issues,” he said.
Cr Hughes said residents would no longer be able to open accounts or make loan enquiries in their own community.
“Access to such services are a basic necessity, the removal of which will inhibit new residents moving to the Shire to take up business or employment opportunities that we desperately need for our communities and Shire to grow to realise the economic benefits we foresee in new mining ventures and diversification in the agriculture sectors,” he said.
“Young families will face increased costs and delays in obtaining house loans as a result of the closure, and this is on top of country areas already facing the significant disadvantage of higher loan to value ratio (LVR) requirements than their city counterparts.
“Our residents will have to deal with bank staff that have little to no understanding or empathy of local conditions.
“Approvals will become harder to get, stifling any growth in our housing market and putting further pressure on the rental market.
Cr Hughes said banking closures west of the Great Divide had already impacted severely on potential economic developments that depend on investor confidence.
“Allowing banks to close their doors has severe ramifications for the growth and sustainability of rural Queensland communities that contribute strongly to the wider economy of the state,” he said.
On February 14th, just last week, Bendigo Bank announced a 31.7 per cent increase in net profit to $321 million on total income of $873.4 million for the half year ended 31st December 2021.