The Holbrook RSL has been a Riverina mainstay for almost 75 years offering the traditional fare of meals, drinks, golf, and bowls. But for manager Chris Bale running the club is dependant on access to a local bank branch, especially when things get busy on a weekend. "It's the nature of the hospitality business where cash is still paramount," he said. "If you have a solid trade … and have a lot of EFTPOS use, it leaves us short of cash." When the town's NAB branch closed in 2023 locals were forced to drive more than 60 kilometres to the closest staffed bank branch. "If there were no banks in town it takes a staff member out of the business for a few hours of the day to drive into Albury and go and pick up the cash," Mr Bale said. That same year, Hume Bank — a customer-owned institution — opened a branch in Holbrook, providing some relief for businesses and residents, particularly older people who struggled with online banking or travelling long distances. But Mr Bale said relying on smaller regional banks still posed challenges. "Cash limits on withdrawals, limited coin amounts, removal of cheque book activity, reduced branch hours all make it difficult when running a business in a country town with limited services," he said. Regional bank drought Earlier this year the big four banks agreed to keep their regional branches open until at least mid-2027 under a deal struck with the federal government. But the agreement does not stop smaller banks from shutting up shop in country towns. Last month, Bendigo Bank announced it would close agencies in 28 regional and rural locations in October due to "decreasing customer use". Now, 21 regional banks have formed the Regional Banking Investment Alliance (RBIA) to lobby the big four banks to maintain face-to-face banking. It has proposed a cost-sharing model in which major banks that withdraw from a regional town would have to contribute to supporting other local bank branches that remain. "A fair levy on banks that close branches or don't have any branches would allow us to keep cash flowing, create real jobs, and expand services to towns that the majors have abandoned," said Traditional Credit Union chief executive and alliance member Simon Lyons. According to the alliance, major banks have closed more than 90 regional branches since February 2022, including more than a dozen this year. "We believe that essential banking services — like advice about scams and fraud, elder abuse, and complex transactions — should be available to all Australians no matter where they live," said alliance member and Hume Bank chief executive Stephen Capello. Mr Capello said the loss of a bank branch had wide-ranging consequences for the whole community. "It's not just transactions, it's not just about ATMs," he said. "Our bank branches underpin what we see as community confidence and local economic resilience. "What we see is that once the last bank leaves town there is often a domino effect. Shouldering costs Queensland Country Bank chief executive Aaron Newman said regional institutions often carried additional costs due to "pass-through banking", where locals used their services for cash handling but then transferred funds to the major banks. "We are passionate about servicing our local communities and keeping the profits local, but it's really tough when we are competing against giants who are not doing the same," Mr Newman said. The federal government has promised to consider the RBIA's proposal for a cost-sharing model to keep regional banks open. "We're holding them to it [the responsibility]," a government spokesperson said in a statement. "We're encouraging other banks to keep branches open in the regions, but in [Bendigo Bank's] case it was a commercial decision for the company."