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Cable keen to tackle rural bank closures

Vince Cable has is expected to meet with Britain’s major banks this month, to discuss branch closures after their bosses refused to renew a promise not to close hundreds of rural outlets.

According to Sky News, the Business Secretary has asked executives from the five largest high street banks, including Barclays, Lloyds Banking Group and Royal Bank of Scotland (RBS), to attend a meeting later this month following initial discussions in December.

Mr Cable is keen for the banks to make a binding commitment not to close branches when they are the last one remaining in a local community.

However, letters from senior bankers have stated that rapid technological changes have resulted in a decreasing reliance upon high street branches.

Half of the UK’s bank branches have shut since 1989, according to figures compiled by community banking campaigners.

Lloyds has said that it will close 200 branches during the next three years, although this will be partly offset by 50 new sites to be opened.

Speaking to Sky News, Mr Cable said: “There are a lot of people who are not connected who also need to do basic banking functions, and we mustn’t be in a position where large numbers of villages and other small communities are effectively being cut off from banking.

“If the banks cannot perform that service we need an adequate substitute, and they’ve got a responsibility to help provide it.”

This was posted in Bdaily's Members' News section by Ellen Forster .