NEWS RELEASE
	1 September 2006   ‘LAST BANKS’ LOSE LAST PROTECTION   Warning call for all single bank communities The announcement by Lloyds TSB that it can no longer honour its pledge, made in April 2000, to keep open where it is the last bank in town signals to the other major banks that such closures are now ‘acceptable’ even if the next nearest bank branch is more than 4 miles distant. Over 1000 communities in the UK are served by only one bank branch and Derek French, Hon. Director of the Campaign for Community Banking Services (CCBS) said: “Although only 19 , mainly rural, closures have been named today by Lloyds TSB this action could open the floodgates to further mass closures by an industry which continues to resist the obvious alternative of neutral shared branches. By becoming a competitor to the banks the Post Office has ruled itself out as a permanent solution”. The move by Lloyds TSB follows a watering down of its pledge earlier in the year when it excluded from protection against closure all rural branches less than 4 miles from the next nearest bank branch.  Now, all branches that fail to meet demanding sales and profit targets are at risk, irrespective of distance.  HSBC already closes ‘last banks’. Contact:  Derek French Tel 01582 764760 Notes CCBS is a coalition of 28 national organisations concerned about bank branch closures, financial exclusion and community sustainability. Details: www.communitybanking.org.uk The LTSB ‘keep open’ pledge was given 10-4-00 and covered 119, mainly rural, branches. Shared branches provide a common counter service to customers of all banks; the model has been academically validated in the UK and operates in the US. 581 urban and 506 rural communities have only one bank remaining: CCBS research Nov 2003 In the last 10 years the traditional high street banks have closed over 2500 branches, 200 since Jan 2005. Post offices do not offer a service to business customers of the major banks and, since entering the financial services market, most major banks will not use them for mainstream customers.