11/08/2025

Shadow Minister for Financial Services Pat Conaghan has responded to the Government’s decision to adopt 8 of the 9 recommendations from the Review into Small and Medium-Sized Banks, saying he’s hopeful it’s a step in the right direction to promote competition and improve access to banking services.

“We’ll look closely at the detail, but anything that helps smaller banks compete with the big four deserves serious consideration,” Mr Conaghan said.

The review’s recommendations include a new tier of regulation for mid-sized banks, simplified licensing and reduced red tape for very small banks, improved access to liquidity support, and a streamlined process for mid-sized banks to use their internally developed models to calculate capital requirements.

The Government will consult further on the 9th recommendation, which proposes a lighter-touch regulatory framework for very small banks, subject to appropriate safeguards for consumers and financial stability.

“In many communities, it’s the small and mid-sized banks that continue to show up when the big four pull out. Cutting red tape will help them keep doing that, but more still needs to be done to ensure banking remains accessible in the regions.”

Mr Conaghan said the announcement comes just days after Bendigo Bank confirmed the closure of 28 regional agencies across Australia.

“When the banks that pride themselves on serving the regions start pulling out, we should all be paying attention.” He urged the Government to respond to the Senate Inquiry into regional bank closures and implement further reforms.

“The inquiry made some sensible recommendations that deserve serious consideration. We need practical solutions to ensure communities are not left without essential banking services.”

ENDS