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.