Perth’s City of Bayswater is set to head along the path already trodden by many rural Councils, establishing the first suburban community bank in Western Australia.
“Since our last bank closed in February residents have been inconvenienced and the business people of Bayswater have been furious at the lack of support in the Townsite by the banking conglomerates,” said Mayor John D’Orazio. “A community bank will not only solve that problem but will give our community something to build on for its long term stability,”
He said Council is determined to provide leadership in this matter. CEO Mario Carosella said a rally against the closure of the last bank attracted a large number of people with over 600 signatories protesting the closure. As a first step, a feasibility study is being conducted to assess whether a locally run bank will be profitable for the community. A location has already been identified and a steering committee established
The Bayswater Community Bank Steering Committee includes three Councillors, with John D’Orazio as Chairperson; three local business people; three community representatives, among them a senior citizen; and Bendigo Bank’s Head of Operations Simon Cornwell.
The Committee’s first aim was to collect pledges of financial support towards the $350,000 required as start up capital. A gala launch for the fund raising drive complete with sausage sizzle, clowns, balloons and car stickers to encourage pledges from the community, was held on April 15 outside the now closed Commonwealth Bank.
Under the Bendigo Bank model, local communities invest in the rights to operate a branch of Bendigo Bank. It sets up the branch and provides full banking products and the backing of its banking licence. The local community receives a guaranteed share of all revenues generated by its branch.
Simon Cornwell said he was impressed by the leadership shown by the Bayswater Councillors and senior staff. “They quickly grasped the potential a community bank holds in delivering a full branch banking service to the community, but they also saw its long term potential as a provider of funding for projects agreed on by the community,” he said.
For further information contact Mario Casorella, telephone (08) 9272 0642
