De-banking occurs when a bank declines to provide banking services or withdraws banking services from an existing customer. Banking services in this context refers to transaction accounts and not the provision of more complex banking or credit products. Over the past decade, Australian banks have been de-banking customers, including FinTechs, DCEs and remittance providers.

In March 2022, the then Government issued Terms of Reference requesting that the Council of Financial Regulators work with AUSTRAC, the ACCC and the Department of Home Affairs to provide advice on potential policy responses to address de-banking in selected industries in Australia. De-banking occurs when a bank declines to offer a core banking service to, or withdraws a core banking service from, a customer.

A working group, led by Treasury, and comprising representatives from the above agencies, has examined key trends in de-banking and policy options. This process involved consulting with representatives from the banking, financial technology, digital currency and remittance industries.

The Council provided this advice to the Australian Treasurer in late August 2022.