Commonwealth Bank to establish operations in Nauru
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The news: The Albanese government has announced that Commonwealth Bank will establish banking operations in Nauru next year, as part of a new Nauru-Australia Treaty with the Pacific Island nation.
The context: Prime Minister Anthony Albanese said that under the treaty commitments, Australia will ensure the people of Nauru have ongoing access to banking services, including correspondent banking services which CBA will provide from 2025, with Bendigo Bank exiting the island.
The government said it is working closely with Australian banks to "arrest the decline of services in the Pacific" with this announcement marking "an important outcome of those discussions".
What they said: "The Pacific has been acutely affected by the global trend of financial institutions reducing or withdrawing banking services, with the fastest withdrawal of correspondent banking relationships anywhere in the world," said Treasurer Jim Chalmers, Minister for Foreign Affairs Penny Wong, Minister for the Pacific Pat Conroy, and Assistant Treasurer Stephen Jones, in a joint statement.
"The decline of banking services affects the ability of Pacific banks and whole countries to access cross-border payment services, connect to the global financial system and fund projects vital for economic development and essential services.
"It also impacts the ability of the Pacific community and workers in Australia to send remittances home."
Nauru President David Adeang said: "I welcome very much the efforts by the Prime Minister and the Government of Australia in ensuring that the Commonwealth Bank of Australia will commence banking operations in Nauru in 2025, a step toward greater financial stability for our people".
The sources: Treasury media release, PMO media release
