Brief
Australian banks seek competition law exemption to share regional branches
The Australian Banking Association has lodged a plan for up to ten shared banking hubs in rural towns, pending ACCC approval.
By Felo News Desk · Published
Australia’s major banks have applied to the Australian Competition and Consumer Commission (ACCC) for an exemption from competition law that would allow them to share physical facilities in regional towns, according to a plan submitted by the Australian Banking Association on October 2.
What happened
The proposal outlines a trial of up to ten "regional banking hubs" where several institutions would operate from a single location. The banks would set broad standards for service availability and share the costs of the facilities. If granted, each bank could decide individually whether to join a hub.
What the reports add
The SMH article notes that the number of bank branches outside major cities fell from 2,335 in 2017 to 1,459 last year, reflecting a shift to online banking. It also cites that the United Kingdom already runs more than 230 similar hubs, though concerns remain about in‑person access.
What was said
Banking association chief executive Simon Birmingham said the package would ensure regional customers still have face‑to‑face options, adding that "branches will continue to be an option for regional customers, however this hub trial explores new ways to deliver face‑to‑face banking services in communities that currently don’t have a branch."
How it came about
In February 2025, Treasurer Jim Chalmers announced a moratorium on further regional branch closures until mid‑2027. Last week, the Commonwealth Bank of Australia and Westpac each extended their own moratoria to 2030. The current exemption request follows those commitments and seeks ACCC approval under rules that require the plan to show no substantial lessening of competition and a net public benefit.
Key facts
- The Australian Banking Association submitted a plan for up to ten shared regional banking hubs on October 2, 2026. (smh.com.au)
- Branch numbers outside major cities fell from 2,335 in 2017 to 1,459 in 2025. (smh.com.au)
- Simon Birmingham, chief executive of the banking association, said the hubs would keep face‑to‑face services available. (smh.com.au)
Timeline
- 2025-02-01 — Treasurer Jim Chalmers announced moratorium on regional branch closures until mid‑2027.
- 2026-09-30 — Commonwealth Bank and Westpac extended branch‑closure moratoria to 2030.
- 2026-10-02 — Banking association lodged exemption request with ACCC.
Sources
- [1] smh.com.au — originally reported as “Regional banking hubs: Australian banks seek competition law exemption to share physical branches in rural areas”
