Campaigners Condemn Banking Code

Issues of Climate Change and Legislation

In its submission to the triennial independent review of the voluntary Banking Code and Business Banking Code, the Campaign for Community Banking Services (CCBS) is critical of the effectiveness of the Codes, and the review process, in the area of access to banking.

Derek French, CCBS Hon Director, said:

“If the banks are to avoid further legislation, the voluntary approach needs to be made more demanding and the review process more transparent.”

CCBS is asking for:

• 12 weeks notice of closure or material cut in opening hours, for every branch, accompanied by a publicized consultation procedure.
  To qualify for 12 weeks notice the banks introduced an unfair ‘last bank’ definition unrealistically based on excessive mileage criteria and used it as an excuse to close more local branches; keep open pledges have now been abandoned The longer notice is appropriate everywhere as is a publicized process for objections.
• A published assessment of the social, economic and environmental impact of closure, including the ‘carbon audit’ called for by Transport 2000.
  Recognition of the importance of local banking access to community sustainability, financial inclusion and saving of carbon emissions is overdue.
• Acceptance of an obligation to seek a substitute site for any free ATM lost as a result of branch closure.
  Withdrawing a branch and/or a free ATM breaks the free banking ‘contract’ which customers everywhere else enjoy.
• Positive action to increase awareness by all small business customers of the existing opportunity to apply to use the counter of a more local competitor bank on an agency basis.
  Specifically recommended last time by the independent reviewer but ignored by the banks without giving any reason.

Contact: Derek French  01582 764760

Notes for Editors

1. CCBS is a coalition of national organisations concerned about bank branch closures, community sustainability, financial exclusion and the environment. Details at www.communitybanking.org.uk , including the shared branching alternative to branch closure.
2. 850 communities have lost all their banks; 1000 have only one bank left.
3. Deadline for submissions to the Code Review 2007 is 12 February.
4. Transport 2000 called for ‘carbon audits’ in its Press Release 4 January 2007 re closure of bank branches ,citing a Leicestershire town where shared branching could save 500 tonnes annually.
5. The Treasury Committee, in its financial inclusion reports 16/19 November 2006, recognized ‘locational exclusion’, recommended (inter alia) exploration of shared branching and warned strongly that the future of the voluntary approach versus legislation is under scrutiny.