Carpentaria Shire mayor Jack Bawden has called out the big banks on the lack of financial assistance to Normanton and other rural communities in North Queensland.
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When a viral video on social media highlighted the struggles Top Service Station Normanton faced to get financial support for a business expansion, Cr Bawden expressed his sympathy and disappointment in the banks.
"It was just crippling what happened to the Reeves family, Wayne went to every bank and financial institution he could find and they just kept saying no because they believed Normanton was a high risk area," Cr Bawden said.
"The big banks want to help develop Northern Australia but they have Buckley's chance if they don't support small communities.
"The personality has gone out of banks and loaning institutions and it all goes into a data base somewhere in Melbourne or whoever knows where. The computer will spit the postcode back out and say 'bad news, sorry'. They just have no idea about what or who is there and just comes up as a no go."
Cr Bawden said the situation prohibited the community's growth, despite councils efforts to attract people to town.
"Council lumber the cost of developing land into building blocks but then it sits there because no one can get finance to build a home on it. because of this huge deposit that people need to come up with," he said.
"The way they decipher loans is not logical. You could have a council employee who has a full time, secure, government job apply for a $500,000 house loan in Normanton they will have to come up with 75pc deposit. However if the same person, same job, same position went to Townsville the bank would give them a million dollars with less deposit.
"Sadly it doesn't happen just here it happens in little towns along the Flinders Highway like Julia Creek and Richmond also."
The North West Star spoke to all four big banks and the message was roughly the same, they assess all applications on a case-by-case basis.
Westpac, the sole banking branch in Normanton, said they have a deep commitment to rural Australia.
"All applications received by Westpac are treated individually and assessed on a case by case basis," a Westpac spokesperson said.
"We are the only bank located in Normanton, and our local bank manager Michelle Bentley would be happy to talk to any local residents regarding the financial options available to them."
Meanwhile NAB Regional Customer Executive John Avent said regional Queensland remains a focus for them.
"Our commitment is reflected in the fact that we continue to lend $3 billion to small and medium businesses nationally each month," Mr Avent said.
"When it comes to accessing finance we remain consistent in our approach. NAB's risk appetite to lend hasn't materially changed but like all banks, we take a more detailed approach to expense validation to make sure we continue to lend responsibly.
"For those looking to secure finance, demonstrating good financial rigour and providing clear insights into the business performance are fundamental in helping our teams get across the detail."
An ANZ spokeswoman said they take their responsible lending requirements seriously which require that they make reasonable enquiries as to the applicant's financial situation, requirements and objectives.
"We continue to continue to support customers in regional locations and have recently approved a number of commercial loans in the Normanton area," ANZ said.
A Commonwealth Bank spokesperson said all home and business loan applications were assessed on a case by case basis.
"We constantly review and monitor our processes and policies to ensure we are maintaining our prudent lending standards and meeting our customers' needs."
Do you live in a rural town and had issues accessing a bank loan despite having equity? The North West Star would like to hear from you, email your story to samantha.walton@fairfaxmedia.com.au
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