3 November 2009

BANK SELL-OFFS NOT ENOUGH

The news this week that taxpayer supported Lloyds and RBS banking groups will have to sell some branches and subsidiaries as a condition of state aid is not surprising but a new dawn in high street banking IT IS NOT!. 

Of more than 1000 UK local communities with only one bank branch, the banks to be sold off - Lloyds TSB Scotland, RBS England, NatWest Scotland - account for only 47, are regionally skewed and lack the critical mass to become effective stand alone competitors to the established Big Four.

Derek French Director Campaign for Community Banking Services said:

"At a time when one of the Big Four, HSBC, is week by week leaving more vulnerable urban and rural communities without local banking provision, government needs to be strongly demanding the introduction of neutral shared branching - a proven low cost way of continuing to serve communities under threat of bank loss but with the potential to save the big banks up to £1bn a year in operating costs whilst also opening up access to new banking providers, something the government says it wants"  

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. HSBC completed and announced closures 2009-10 are 70 of which 36 are 'last bank' or create a 'last bank' situation.  See yesterday's CCBS Release.
3. 'Branch Network Reduction 2009 Report' on website gives branch numbers.
4. CCBS' shared branching proposals are contained in 'Bank Closure Problems - One Solution Fits All'  available at www.communitybanking.org.uk/reports.htm
5. CCBS' manifesto briefing for 2010 General Election available from same source.

3-11-2009