9 December 2024

Commonwealth Bank to establish operations in Nauru

Note

Joint media release with

Senator the Hon Penny Wong
Minister for Foreign Affairs

The Hon Pat Conroy MP
Minister for International Development and the Pacific
Minister for Defence Industry and Capability Delivery

The Hon Jim Chalmers MP
Treasurer

The Albanese Government welcomes the Commonwealth Bank of Australia’s commitment to establish banking operations in Nauru in 2025.

This is good for the people of Nauru and good for safety, security and stability in our region.

We’re working closely with Australian banks to arrest the decline of services in the Pacific and this announcement is an important outcome of those discussions.

We thank the Commonwealth Bank for its contribution to economic prosperity in the Pacific which comes as Prime Minister Anthony Albanese today announces a Treaty between Australia and Nauru.

We thank the Nauruan government for supporting the establishment of banking services by the CBA.

We also thank Bendigo and Adelaide Bank for facilitating a smooth transition and handover as they exit Nauru.

The Albanese Government is making significant investments to help prevent the loss of banking services in the Pacific.

These include:

  • Working with ANZ and Westpac to secure their continued banking presence in the Pacific.
  • Working with the World Bank to support the development of inclusive and secure digital identity infrastructure across Pacific Island Countries.
  • Working with the Asian Development Bank to enhance regional compliance with anti‑money laundering and counterterrorism financing requirements.
  • Resourcing the Attorney‑General’s Department to assist with criminal justice and law enforcement capacity in the region.

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.

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.

Addressing the decline of correspondent banking relationships in the Pacific was the focus of the two‑day Pacific Banking Forum in Brisbane which the Albanese Government hosted jointly with the US Government in July.

Helping to prevent the loss of banking services in the Pacific is vital to the safety, security and economic development of our region.

We’ll continue to work with the banks and our international partners to address this issue, to make our region safer and more stable and build a better future for the people of the Pacific.