North Wales Assembly Member Mark Isherwood has written to HSBC following news that it will be closing two of its branches in Flintshire later this year.
Mr Isherwood was alarmed to have learned from a third party that HSBC plans to close two of its Ewloe branch on 11 November and Caergwrle branch on 9 December.
In his letter to the bank highlighting concerns regarding the proposed closures, he states:
“This is particularly worrying in the context of the Access to Banking Protocol, given that HSBC’s Caergwrle Branch is also the nearest Branch of HSBC (or any Bank) to my own home and community.
“As with your previous Branch closures across North Wales, it is reported that HSBC again blames a rise in telephone and internet banking, although concerns have once again been raised by constituents regarding the impact this will have on them and their communities. They believe that we instead need to take a longer term, truly customer-focused approach.
“Having an accessible local Branch is important for older people, those without transport, those without internet access, shopkeepers and small businesses. It is very difficult for many customers to travel to those Branches which remain in other locations.”
He added: “In March 2015, the UK Government and the British Bankers Association entered an agreement that commits banks to working with local communities to establish the impact of a branch closure prior to the closure, finding suitable alternative provision to suit individual communities and putting satisfactory alternative banking services in place before a branch is closed.
“In May 2015, the Access to Banking Protocol came into effect to help minimise the impact of bank branch closures on customers and local communities, requiring a pre-closure assessment, outlining consultation and community engagement requirements prior to a branch closing, stipulating an assessment of the impact of any proposed closure on the wider community, including businesses, and ensuring continued provision of alternative ways to bank.
“In an August 2015 letter to the British Bankers Association (BBA), the UK Government outlined its position, stating: ‘Branch closures continue to be a matter of concern for consumers and small businesses in affected communities…it is important that closure decisions are made responsibly, and that efforts are made to provide adequate alternative banking arrangements reflecting local circumstances—including small business needs—before a branch closes.’
“It was agreed that the operation of the protocol would be independently reviewed ‘one year on’ and the BBA launched an independent review of the protocol on 6th May 2016, led by Professor Russel Griggs OBE . This will consider the way banks have applied the Access to Banking Protocol, as well as the outcomes for affected customers and communities. If appropriate, it may make recommendations to amend procedures to ensure banks continue to meet the protocol’s objectives.
“Responding to a 30th June 2016 House of Commons Debate on the motion “That this House is concerned about continued bank branch closures and the damage that this causes to local communities, small businesses and the welfare of senior citizens; and calls upon the Government to help maintain access to local banking”, The Economic Secretary to the Treasury, Harriett Baldwin MP, stated:
“The (banking) protocol means that when a bank decides to close a branch it must think carefully about the consequences of doing so, particularly when it is the last bank in town. We have heard today that Professor Russel Griggs has been appointed by the BBA to review how it has been working in its first year. All the points raised by Members will be excellent submissions to that review. I hope he will take the opportunity to meet hon. Members to hear at first-hand the feedback on the independent review of the protocol. I would like practical recommendations to come out of the review on how we can move forward. I think we all recognise there will be an ongoing review by banks on how they can best use their branches”.
“I would therefore be grateful if you could give consideration to the concerns raised about HSBC’s proposed closure of its Branches in Ewloe and Caergwrle in this context and provide a response accordingly.”