We started our year, in September 2010, in a modestly optimistic mode but, just over a year later, following publication of the Final Report of the Independent Commission on Banking (ICB) the outlook looks bleak. Branch closures continue to escalate and the much heralded report lacked depth and was inconclusive with regard to branch access. However, there remain avenues still to be pursued.

Political
The industry has made it clear that they will only act on this area if government prioritises it but, in spite of numerous representations to relevant Departments of State, government abdicated responsibility to the ICB (above).

The OFT’s review of barriers to entry in retail banking was flawed in respect of our area of interest but the Treasury Committee, in response to evidence from CCBS and others, included in its report on competition and choice in retail banking (2 April 2011) a specific recommendation for the ICB to consider improved inter bank agency agreements (IBAAs) and neutral shared branches. Further evidence was submitted to the ICB by CCBS and others in support of the Treasury Committee recommendation but, regrettably, it failed properly to address the issue of branch access.

CCBS submitted evidence and contributed to others’ representations against the plan to target 2018 to end the cheque clearing and was encouraged by the reversal. However, we do not expect fundamental change in the cheque’s decline.

Banking Industry
Dialogue with the banks, the BBA and the Payments Council has continued. Most of the new entrant banks have been seen or contacted, although marginal to CCBS’s mission.

At its request, the industry was provided with more detail on the operation of shared branches and achievable cost savings but has not responded pending the ICB outcome. Meanwhile branch closures have continued to escalate, 183 by the Big 4 in 2010, with an emphasis on ‘last bank’ and ‘next to last bank’ in vulnerable communities; the trend continues in 2011.

Barclays and NatWest (RBS in Scotland) maintain pledges not to close in ‘last bank’ situations but their definitions are very restrictive and few communities stand to benefit meaningfully from this very limited protection. NatWest has ceased, for the time being, its purge of opening hours and there are modestly encouraging signs re retention of ‘free to use’ ATMs when branches close. 80% of personal current accounts can now be accessed, at least for withdrawals, at post office counters.

Small Business Sector
The small business sector remains the most disadvantaged by local bank branch closures. 90% have no post office counter access and infrastructure problems militate against any significant improvement and (see Political above) no progress has been made with improving IBAAs or introducing neutral shared branches. Retail small businesses also suffer loss of turnover when those previously coming into a community primarily to use the bank, go elsewhere and take spend with them.

50 Roundwood Park Harpenden Herts AL5 3AF Telephone/Fax: 01582 764760

Website: www.communitybanking.org.uk

Media
We have worked well with print and broadcast media throughout the year and have enjoyed extensive support for the Campaign, particularly from the Mail on Sunday. Input to local press and BBC Local Radio on specific closure campaigns has been ongoing and, nationally, we have had input to a BBC TV documentary to be shown in January 2012.

Additionally …………………………
During the year CCBS has:

• Briefed potential outsourcers, banking consultants and researchers.
• Participated in the Financial Services Research Forum and other gatherings of banking and financial services professionals and consumer bodies.

and maintained a dialogue with our supporting organisations, banks and their trade bodies, local communities, national and local journalists, academics, government departments, ministers, shadow ministers and parliamentarians.

The Year Ahead
The priority for the year ahead, which commenced in September 2011, is to secure a recommendation for government action upon which we can build. Several avenues are being actively pursued and in the light of progress a review of the format for future action will be undertaken mid-year.

CCBS will continue to support individual communities facing branch closure, reduced opening hours and removal of free ATMs.

Support
20 national organisations support and fund the Campaign, representing the interests of the elderly, disabled people, small businesses, consumers, bank employees, rural and urban communities, the environment and the poverty lobby. The Campaign’s policy is governed by an active and involved steering group of 5, drawn from these sectors.

Website
The Campaign website www.communitybanking.org.uk continues to be popular with journalists, researchers and government agencies as well as communities facing closure threats who are offered specific advice.

Services

• Supporting organisations receive a monthly media monitoring report.
• Input is available to supporting organisations’ discussions, conferences and research where relevant.
• Tailored articles for house journals can be made available.

Enquiries
The Campaign’s regularly updated website is at www.communitybanking.org.uk

28 October 2011