Opened the debate
Chalmers argued that the bill addresses the rapid withdrawal of correspondent banking services in the Pacific, which risks cutting the region off from global finance. The legislation enables the Commonwealth to use its balance sheet to guarantee Australian banks' Pacific operations against unlikely defaults, with banks paying fees rather than receiving subsidies. Chalmers stated this measure complements other initiatives, including working with major banks to maintain their presence and investing in digital identity and compliance infrastructure. The Treasurer also linked this to domestic efforts to secure banking services in regional Australia through branch closure moratoriums. Chalmers concluded that the bill is essential for maintaining economic stability and security in the Pacific region.