Shropshire Star

Inquiry to probe loss of bank branches

A government enquiry led by Montgomeryshire Assembly Member Russell George is set to investigate the closure of bank branches across Wales.

Published

Over 200 branches have closed across the country since 2008, leaving Powys towns such as Knighton, Llanwrtyd Wells, Hay-on-Wye and Llanidloes without a single bank branch.

Barclays Bank claimed there had been a 25 per cent decline in use of the Knighton branch and a 16 per cent decline in Hay in the last two years before they closed in September 2018.

Llanwrtyd Wells also lost its last bank in November 2015 and Builth Wells and Rhayader have also lost banks in recent years.

Now the National Assembly’s Economy, Infrastructure and Skills Committee has launched an inquiry looking at access to banking services across Wales. The Committee will be looking at the ways in which branch closures and access to free ATMs can affect local communities.

Russell George AM, chair of the Economy, Infrastructure and Skills Committee, said the committee would be trying to get a clear picture of banking services in the rural economy.

"Accessing face-to-face banking has become a real problem for many," he said.

"There is obviously a concern that the situation could be having a negative impact on communities as well as local economies.

Evidence

"We want to look more closely at the situation across the country and urge those affected to take part in our inquiry so we get a clear picture of how banking in Wales has changed."

The committee says it wants to hear the views of people in communities affected by bank closures and will also be taking evidence from expert witnesses who have carried out research into the problem already.

Ben Cottam, Head of External Affairs for the Federation of Small Businesses Wales added: “The withdrawal of banking facilities is a real concern for businesses across Wales.

“There can’t be many communities in Wales which haven’t seen the loss of one or more banks in recent years and for businesses, this has meant the loss of banking relationship managers and financial expertise, the need to travel long distances to deposit sometimes significant sums of cash.

“Furthermore, we see the withdrawal of cash machines as banks close. For rural areas and tourist economies which are heavily dependent on case, this represents a significant problem for smaller businesses.

“I’d encourage small business owners to take a few minutes to share the many problems bank closures are causing for their business, to help provide evidence for the Committee to make recommendations for action.”

The Committee wants to hear the views of people in communities affected by bank closures and will also be taking evidence from expert witnesses who have carried out extensive research into the problem.

The Committee’s call for written evidence is open until May 17. An online survey asking people for their experiences of accessing bank services will also run until the end of May.