October 22, 2012
Bendigo Bank has publicly launched a prospectus to form a Community Bank in Nanango.
The launch, which was held at the Nanango Cultural Centre last Thursday night, follows four years of work by volunteers who began looking at the idea after the National Australia Bank closed its Nanango branch, saying it was no longer viable.
Providing the prospectus can raise a minimum of $515,000, the new bank is expected to open its doors at 92 Drayton Street within a few months.
Bendigo Bank has been operating community banks in the South Burnett for the past seven years.
In June 2005 it launched a prospectus for the region’s first community bank in Yarraman. This was fully subscribed, and the Yarraman Community Bank branch officially opened a few months later on September 14, 2005.
This was followed in 2009 by the official opening of a Blackbutt-Benarkin sub-branch on December 14.
Bendigo Bank says its banking model is a partnership between the bank and the community.
Under the model, each branch is a locally owned and operated company which functions as a franchise of the Bendigo and Adelaide Bank.
Bendigo and Adelaide Bank provides each community bank with the coverage of its banking licence, a full range of banking products, training of staff and ongoing support.
Depositors are protected by Bendigo and Adelaide Bank’s Government Guarantee coverage.
Both the bank and the community company are each entitled to agreed portions of the revenue of the local community bank branch, and the local company is responsible for paying branch running costs.
When the local company begins to make a regular operating surplus, after the payment of branch running costs, and Bendigo and Adelaide Bank’s share of the revenue is received, the remaining funds are available to be reinvested back into the community through dividends to shareholders and grants to community groups and projects.
Since Bendigo Bank launched the concept in 1998, its network has expanded to 295 community bank branches with $22.05 million in funds under management.
The Nanango Community Bank branch’s prospectus was launched by the project’s steering committee, Chairman Ross Towell, Secretary Denise Smith, Treasurer Michael Jones and members Lionel Kerr, Sandy Towell and Rose Christie.
When launched, the branch will be a 50/50 partnership between Bendigo Bank and South Burnett Community Enterprises Limited (SBCE), the company which already operates the Yarraman and Blackbutt-Benarkin branches.
South Burnett Community Enterprises Limited is chaired by Frank Smith; David Robison is Secretary; and Jim Beveridge is Treasurer. Other board members are Ross Begent, former Rosalie Shire Mayor Noel Strohfeld, Wayne Emms, Brent McLennan, Ross Towell and Jeff Connor.
Photos: Eloise Handley
