MSPS to probe demise of Airdrie Savings Bank

The chief executive of Airdrie Savings Bank will appear before MSPS today as they examine the impact of the decision to close its doors for good.

Last month the bank – the last surviving independent savings bank – announced it is winding down with the potential loss of 70 jobs.

The regulatory burden faced by small lenders and the costs involved in investing in new technology were among the factors blamed for the decision.

The Scottish Parliament’s economy, jobs and fair work committee will hear from chief executive Rod Ashley together with Professor Charles Munn of the University of Glasgow and Wendy Dunsmore of the Unite union.

It will look at how the bank was affected by the financial crisis and whether current regulations are a barrier for challenger banks. The committee will also look at lessons learnt for the financial sector, including credit unions.