The New England MP emphasised the importance of banks to regional Australia after last week’s announcement that the Guyra branch of the Commonwealth Bank would close later this year.

“The community protects the banks, and the banks should protect the community,” Mr Joyce said on Tuesday, the first day of hearings at the royal commission.

The commission – appointed by Prime Minister Malcolm Turnbull in November – is charged with ensuring the banks’ stability and investigating skulduggery and malfeasance, vital to Australia as finance has replaced mining as the country’s biggest industry.

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“Today, as the banking royal commission begins, we have a wave of banking closures across the New England and the nation.”

As well as the closure of Guyra’s Commonwealth Bank branch, the National Australia Bank is closing its Bingara branch in May.

ANZ shut its Glen Innes branch last September, while the National Australia Bank reduced its services in Guyra and Uralla to three days a week.

“What,” Mr Joyce asked, “is the mutual obligation of the banks to a nation that protects their position under the current regulatory framework? Surely a section of this quid pro quo should be a community service obligation to keep branches open in small regional towns.

“The banks will say their transaction level at these branches has gone down; however, the community service obligation remains. I would strongly suspect the amount of money let out in the district to farmers and businesses would have gone up.

“So if you believe it is only right and proper to lend to farmers and businesses in the district, then it is only right and proper you keep the branches that service the district open. Otherwise, a bank could make an awful lot of money by keeping one branch open in Sydney, with the rest of the services delivered from a call centre in the Philippines.”

The wave of closures has drawn the ire of other Nationals politicians.  Last week, state MP Adam Marshall denounced what he saw as the banks’ indifference to regional Australians.

The Commonwealth explained last week that keeping the Guyra branch was no longer viable, as transactions had declined by more than 40 per cent over the last few years, as many customers switched to phone or online banking.

“The decision to close our Guyra branch was not an easy one,” a spokesperson for the Commonwealth said, “and we know some members of the community will be disappointed.”

The bank said it would be happy to help its customers adjust to the changes.  It would show them how to use electronic banking or use the Commonwealth ATM for regular banking tasks.

Customers would also be able use the Australia Post outlet for personal and business banking transactions, while mobile lenders could see home loan customers at a location that suited them.