Westpac Bank has announced it will maintain its regional branches for an additional three years, extending its moratorium on closures from 2027 to 2030. This decision follows a federal inquiry that examined the effects of bank branch closures on rural communities. The announcement was made on Monday, and it includes plans for a new Community Banking Service and initiatives to attract employees to smaller towns.

In 2024, a Senate committee released a report detailing the impact of bank closures in regional Australia. The inquiry received over 600 submissions and traveled across the country to gather feedback from local businesses and residents. It proposed eight recommendations to the federal government aimed at addressing the concerns raised.

Westpac's new initiatives come more than a year after the report's release. Chief Executive Anthony Miller stated that the bank conducted a thorough review of its services in rural areas. "We want to make sure these [regional] areas have access to the services they need to prosper and grow," he said.

Kitty Prodonovich, Chief Executive of the Regional Chamber of Commerce and Industry WA, expressed optimism about Westpac's response to community concerns. "My hope is that they've listened and that people in regional WA aren't going to have another service close down or taken away," she said. Prodonovich emphasized the need for alternative services to replace those that are withdrawn, noting that decisions about closures often come from individuals who lack experience in regional areas.

Senator Matt Canavan, who chaired the regional banking inquiry, welcomed Westpac's commitment but criticized the federal government for not addressing the committee's recommendations. "It's good to see there's been a moratorium on bank closures at least from the major banks, and I welcome Westpac doing this," he said. However, he pointed out that solutions are still needed for communities that have already lost financial services.

Canavan stressed that if banks must close branches, they should do so cautiously, ensuring that communities are not left without alternatives. He called for government intervention to fill the gaps in financial services, similar to support provided in telecommunications and education.

Treasurer Jim Chalmers also praised Westpac's announcement, stating, "This is welcome news and builds on the commitments we secured from the big banks in February to keep services available in regional Australia." He encouraged other banks to follow Westpac's example in supporting regional communities.