The Albanese Government is taking steps to address the challenges and impacts of de‑banking in Australia by supporting recommendations in the Council of Financial Regulator’s paper and committing to work with the sector to implement them.
De‑banking, where a bank declines to offer or withdraws banking services to a customer, can severely impact people, businesses and their operations.
Taking action on de‑banking will support Australia’s technology sector to grasp opportunities by improving transparency and fairness in the banking sector.
We want to help ensure customers in emerging sectors of the economy have access to bank accounts and the services they need.
De‑banking can stifle competition and innovation for certain sectors and increase the risk for affected businesses by forcing them to conduct transactions exclusively in cash.
De‑banking is often experienced by customers considered to be in high‑risk industries, such as the financial technology, digital currency exchange and remittance sectors.
The Council of Financial Regulators consulted with representatives from these sectors and the banking industry in preparing their report.
The report made four recommendations aimed at providing a better understanding of the extent and nature of de‑banking and to improve transparency, consistency, and fairness for affected customers.
Our plan going forward is to work closely with regulators, banks and affected sectors to ensure we can effectively implement the recommendations.
The Government’s response to the Council of Financial Regulators’ report is available on the Treasury website.
