Ratings Agency Says Banks Can Afford Social Responsibilities

New analysis from S&P Global Ratings, reported by BankingDay.com finds Australian banks have "ample" financial capability to pay for bank branches.

S&P also says banks will not be able to 'simply walk away from cash.'

"We believe major bank ratings have ample headroom in their credit ratings to absorb the costs of unprofitable branches," S&P observed.

S&P cited CBA data, showing the group reported cash services cost $410 million last financial year, brought in $60 million in fees, for a net loss of $350 million.

" ... we believe political pressure prevents major banks from simply walking away from cash services," S&P said.

Banks and the ABA have complained loudly in recent years about the cost of maintaining branches and cash distribution services. 

Commonwealth Bank (and the other three big banks) GAVE UP $503 million in ATM fee revenue in 2017 from 251,651,300 ATM cash withdrawals made by 'foreign' customers. 

Australia's big banks have now agreed to a temporary moratorium on branch closures but have already dismantled most of Australia's bank and cash networks

Banks have dismantled half their cash network

Banks are dismantling national economic infrastructure

Data from the Australian Prudential Regulatory Authority and the Australian Payments Network reveals  Australia has lost 926 ATMs in the last financial year (to June 2024). Banks removed 217 bank-owned ATMs in the 12 months to June 2024 and a staggering 8,338 bank-owned ATMs in seven years.

The number of bank-owned branches plus bank-owned ATMs (so the total bank-owned cash access points) has halved in seven years from 19,508 to 8,836 as at 30 June 2024.

Australia's banks have dismantled half of their cash distribution network.

Demand for cash continues to rise

Over the seven years, to June 2024, the total value of Australian banknotes circulating rose 37 per cent from $73.5 billion to $100.8 billion and these numbers continue to rise into 2025.

Right now, in March 2025, there is $103,259,000,000 ($103.3 billion) of Australian notes in pockets, in tills and circulating in the community.

Choice reports that 80% of Australians use cash and 97% support a cash mandate.

Because cash is not going away, bank branch closures make life difficult for many Australians, says Choice. You can read the bank's policy on branch closures here:

Cash means control

One reason cash remains popular is because cash makes budgeting easy.

Young people, parents and people on strict budgets are increasingly following influencers using cash to budget and save.

These recent popular hashtags have billions of views:

#CashStuffing

#100EnvelopeChallenge

Cash Welcome is promoting the use of cash by young people with our social media campaign "I always carry cash" on TikTok, Facebook and Instagram.

A growing number of mums and budgeting experts are using cash to promote savings and taking control of your money, like Vicky_Plans_Budgets on YouTube.

Please share our petition calling for mandated cash acceptance by supermarkets and mandated cash access in all suburbs and towns: https://www.change.org/BankingAndCashGuarantee

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