8 October 2008

BANKING CRISIS: ACT NOW ON BRANCH CLOSURES

Unquestionably government had to act urgently to sustain a banking system crucial to all of us.  However, the time has come for all banks which need to take up the government’s stakeholding and/or liquidity support to properly recognize their social obligations to customers and the wider public.

Derek French, Director of the Campaign for Community Banking Services (CCBS) said:

“It is for others to comment on important conditions needed such as small business lending, executive pay and maintenance of competition but government will have failed if it misses this unique opportunity to insist upon retention of branch access in rural and less affluent urban communities.  This could be evidenced now by a commitment to shared branching trials.”

Shared branching, as well as being an operationally feasible and viable alternative to branch closures in vulnerable communities, has considerable advantages for the political objectives of sustaining communities, carbon reduction, financial inclusion and for competition and bank profitability.

Contact:
Derek French 01582 764760

Notes for Editors :

1. CCBS is a coalition of 26 national organisations concerned about bank branch closure, community sustainability, financial exclusion and carbon reduction.
   
   
2. 'Branch Network Reduction 2008 Report' on website gives network numbers.
   
   
3. CCBS's shared branching proposals (including post offices) are contained in 'Bank Closure Problems – One Solution Fits All' downloadable from: www.communitybanking.org.uk/reports.htm
   
   
4. An example of carbon reductions available can be seen in ‘HSBC Rejects Ground Breaking Shared Branching Opportunity’ at www.communitybanking.org.uk/articles.htm