Government response to Potential Policy Responses to De-banking in Australia

The Council of Financial Regulators (CFR) provided the Australian Government with advice on potential policy responses to de‑banking in August 2022 and published its advice in October 2022.

The government recognises the seriousness of de‑banking, which occurs when a bank declines to provide banking services or withdraws banking services from an existing customer.

The government’s response highlights its commitment to taking action on de‑banking and its intentions to balance support for affected businesses, while also acknowledging banks are commercial enterprises and must manage their own risks and resources.