Banks and Building Societies: Closures
The question
To ask the Chancellor of the Exchequer, whether she has had discussions with (a) banks and (b) building societies on steps to help keep high-street branches of banks and building societies open.
Answered by Tulip Siddiq
Treasury Ministers regularly meet representatives from the banking and building society sectors to discuss a wide range of issues.
The Government understands the importance of face-to-face banking to communities and high streets and is committed to championing sufficient access for all as a priority. This is why the Government is working closely with banks to roll out 350 banking hubs, which will provide individuals and businesses up and down the country with critical cash and banking services. Following a meeting with the Economic Secretary in September, the UK banking sector has committed to deliver these hubs by the end of this parliament.
The Government also recognises the value that building societies bring to their members in local communities across the country, and that they have a 28% share of the UK’s branch network.
While branch closures are commercial decisions for banks and building societies, FCA guidance expects firms to carefully consider the impact of planned branch closures on their customers’ everyday banking and cash access needs and put in place alternatives where reasonable. This seeks to ensure that branch closures are implemented in a way that treats customers fairly. Where firms fall short of expectations, the FCA may ask for closures to be paused or other options to be put in place.
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