2 November 2009

HSBC – “THE LEAST LOCAL BANK”

Following further disclosures at the weekend of a significant ongoing closure programme by “the world’s local bank”, to rival the infamous mass closures by Barclays in 2000, CCBS research has revealed startling data on the “localness” of HSBC relative to its competitors in England and Wales.  HSBC has only a nominal presence in Scotland.

From a position 6 years ago when the responsibility of serving the 800 local communities with only one bank remaining after previous closure rounds was borne in roughly equal shares by the traditional Big 4, the position after HSBC’s February 2010 planned closures looks like this:

HSBC                        14% (falls to 11% end 2010 if trend continues)
Lloyds TSB                24%
Barclays                    28%
NatWest                    29%

and discloses a determined effort by “the world’s local bank” to vacate local communities where it is the last, or last but one, bank.  Of 70 announced and completed closures in 2009/10, 36 fall into those categories.

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

“We call upon HSBC now to participate in shared branching trials to ensure continued banking access to vulnerable communities and upon government to make protection of branch networks a priority in its negotiations with the industry it is supporting with taxpayers’ money.”

Contact:  Derek French  Director  01582 764760
Website:  www.communitybanking.org.uk

Notes to Editors:

1. CCBS is a coalition of 22 national organisations concerned about bank branch closures, community sustainability, financial exclusion and carbon reduction.
2. ‘Branch Network Reduction 2009 Report’ on website gives branch numbers.
3. CCBS’s shared branching proposals are contained in ‘Bank Closure Problems – One Solution Fits All’ downloadable from www.communitybanking.org.uk/reports.htm
4. CCBS’ manifesto briefing for 2010 General Election is available from above source.

   2-11-2009