BANK BOSS IS QUIZZED OVER CLOSURE

The closure of Airdrie Savings Bank was examined at the Scottish Parliament yesterday as its chief executive answered questions from the economy, jobs and fair work committee.

Rod Ashley attended the evidence session — where questions included the circumstances leading to last month’s announcement, impact on employees and challenges in the current banking marketplace — alongside Unite regional officer Wendy Dunsmore and Professor Charles Munn of Glasgow University, the author of the bank’s official history.

Responding to convener Gordon Lindhurst’s question about “the background of the decision to close”, Mr Ashley said: “We undertook a strategic review, and the medium- to-long-term position was sufficiently uncertain that the decision was taken that there be a wind-down in an orderly fashion and in the interests of the depositors.

“You could have ended up in a situation where the bank continued making losses for years to come and winding down control would be taken out of the hands of the community and trustees and handled by regulators — the bank didn’t wish that to happen.”

Increased regulation, the switch to mobile banking and cost of technological developments were all cited as factors in the decision; with Mr Ashley saying: “The overarching factor outwith our control would be the lower-for-longer interest rate environment.”

Ms Dunsmore said of the bank’s 70 employees: “The announcement was a shock, and lot of people have been loyal for lots of years — some have worked there for 40 years.

“I think they’re an absolute catch for every other bank. Airdrie Savings Bank’s commitment to training is exceptional and the proportion with degrees and qualifications is very high.”

Mr Ashley also advised MSPs that any surplus at the time of the bank’s final closure “requires to be returned to depositors in such proportion as they had deposited at a [set] date in time”, adding that as each individual share would be small, they would explore whether it would be allowed for such assets to “be used in a community or charitable capacity”.

Various organisations including the Scotland’s national business archives and Culture NL, operators of Summerlee museum, have been in contact about the bank’s artefacts, and the chief executive said: “I’m confident they’ll end up the most appropriate place where they can be shared with the community.”