Community banks lose community money

Up to seventy seven of the 227 Bendigo and Adelaide Bank community bank branches are running behind their business plan and, of those, six to eight are classified as being in "sick bay", including the Robe Community Bank branch in the southeast of South Australia.

More than 150 of the franchised branches are profitable. Bendigo is said to be propping up some branches with overdrafts.

Robe Mayor William Peden says local people and businesses had invested in the community bank model but had lost money while Bendigo had made a profit from the local operation.

"Both Mount Gambier and Edenhope have lost all of their shareholders' money too," he claims.

Source: The Australian