Stop closing branches, says bank chief Bailey

Andrew Bailey weighed into the debate over bank closures yesterday, telling lenders they must ensure customers have ‘direct access’ to services.

The Bank of england governor made the intervention after exclusive figures obtained by the Mail showed nearly 200 branches are earmarked for closure in 2024 – on top of 645 shut last year.

Labour MP Siobhain Mcdonagh pressed Mr Bailey on the issue during a Treasury Select Committee hearing, asking whether it was reasonable to be closing branches so quickly given the impact on vulnerable customers and high streets.

Mr Bailey replied: ‘I think it is important that people in this country have the ability to have direct access to their banks. By direct I don’t just mean online – in other words, physical.

‘ where they want it, they should be able to get it. How it’s organised there’s a question to be answered because changes are happening.’

He added: ‘The banks will say the footfall in branches has fallen a lot – they will say that they’re

‘Collapsing high streets’

not used as much as they were before. But I agree with you.’

Ms Mcdonagh said after yesterday’s meeting: ‘Today’s comments by the governor of the Bank of england should come as no surprise to UK banks.

‘It should make them think again about the slew of bank branch closures that have taken away people’s access to their own cash.

‘That doesn’t just affect vulnerable people who rely on cash, but also our collapsing high streets that desperately need the footfall.’

A spokesman for industry body UK Finance said: ‘Fewer people are visiting bank branches on a regular basis. This means banks are having to make difficult decisions about the number of branches they operate.

‘The banking industry is committed to ensuring there is continued access to cash for those who need it, when they need it.’