Wagga City Councillor Richard Foley lodged a notice of motion for Monday's meeting for council to debate supporting the establishment of a 'post office people's bank' by the Commonwealth government.

He also recommended Mayor Dallas Tout write to federal ministers to support a public bank.

"Two or three weeks ago when Commonwealth Bank pulled out of Junee I thought we needed to start getting some solidarity in the wider community in regional and rural Australia," he said.

"We want services."

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Cr Foley said the proposed government bank would work "just like any other bank" but use the thousands of Australia Post outlets across the country to guarantee banking services across regional and rural Australia.

"It would provide good face-to-face services for people who want to deal with banks like that," he said.

"[It also] makes the banks more competitive in the market when they have to deal with a government bank."

Wagga deputy mayor Jenny McKinnon said Cr Foley made "really legitimate points" about lack of access to banking services in regional areas.

"The most important thing is to give people access to banking services," she said.

"Not all people can do online banking so they definitely do need the physical services there."

She said she was open to finding out more about the plan at the council meeting.

Junee is set to lose their only bank in December, after the Commonwealth Bank announced it would close the branch.

Customers were directed to complete all in-person banking at the Junee Post Office, which offers Bank@Post services.

The decision was criticised by the community because the Bank@Post service does not carry enough cash to fully cater for local businesses.

The notice will be debated at the next council meeting on Monday, October 17.

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