Treasury orders review into bank branch closures as small firms count the cost

"The Treasury has commissioned an independent review into the impact of more than 6,700 bank branch closures across the UK, and has signalled it is prepared to compel lenders to provide face-to-face services where the evidence shows communities and small businesses are being left adrift."

"The Access to Banking Review, announced on Thursday by Lucy Rigby, the economic secretary to the Treasury, will be led by Richard Lloyd OBE, the former executive director of consumer group Which? and a one-time interim chair of the Financial Conduct Authority. Lloyd has been asked to report back by October, gathering evidence on where branch withdrawals have bitten hardest, who has suffered most and where new intervention is needed."

"The review lands alongside the government's Enhancing Financial Services Bill, trailed in the King's Speech, which the Treasury said would arm ministers with powers to "act swiftly if the evidence supports intervention on access to banking services". In Whitehall parlance, that is unusually direct language - and a clear shot across the bows of an industry that has spent a decade thinning out its physical estate."

"According to consumer champion Which?, 6,719 branches have shuttered since 2015 - an average of roughly two a day. Lloyds Banking Group, NatWest, Barclays, HSBC and Santander have all taken the axe to their networks, with a fresh tranche of more than 130 closures pencilled in for May and June alone."

The Treasury has commissioned an independent Access to Banking Review into the effects of more than 6,700 UK bank branch closures. Ministers have indicated they are prepared to require lenders to provide face-to-face services when evidence shows communities and small businesses are being left without adequate access. The review will be led by Richard Lloyd OBE and will gather evidence on where branch withdrawals have caused the most harm, who has been most affected, and where new intervention is needed, with a report due by October. The review aligns with the Enhancing Financial Services Bill, which would give ministers powers to act quickly if evidence supports intervention in access to banking services. Branch closures have accelerated since 2015, with thousands shut down and further closures planned.

Read at Business Matters