Carney shuts down the Bank of England!
300-year-old tradition of private accounts for staff is axed
AS GOVERNOR of the Bank of England, Mark Carney is used to dealing with the far-reaching effects of the global economic crisis and now Britain’s decision to quit the EU.
But there is one issue closer to home that has stumped the Canadian – saving a tiny bank for just 4,000 clients at his own headquarters.
Mr Carney has ended more than 300 years of tradition by closing the Bank’s internal branch for staff because it cannot compete in the modern era of online banking and contactless payments.
Until recently, current and former staff could open accounts and receive specially issued Bank of England cheque books and debit cards marked with the figure of Britannia. The sort code of 10-00-00 indicated its status as Britain’s most important branch, with cheques grandly addressed ‘to the cashiers of the Bank of England London’.
Customers could withdraw money from two branded cash machines at its Threadneedle Street building.
But according to insiders, the institution could not offer the modern services provided by ordinary high street banks. ‘With the advent of online banking and contactless payments, we just couldn’t keep up,’ a source told The Mail on Sunday.
Clients were told last November that their accounts would be wound up and in the past few months each customer has been personally assisted in finding a new bank. The Bank has also closed the accounts of Government departments, forcing ministries to turn to the high street. The internal bank was a soughtafter perk for employees, helping attract experts from the City, but opening new accounts was forbidden once the consultation began.
A long-term customer, who did not wish to be named, said: ‘It’s very disappointing as it’s my main bank account. But sadly I’ve been suspecting the day was coming for a long time. I am writing as many cheques to friends as I can so they all have a souvenir to keep from the Bank and its 300-year-old tradition.’
Despite the closure of personal services, there will still be a cashier’s desk at Threadneedle Street where the public can exchange old and damaged notes for their face value – if more than half the note can be presented.
A Bank of England spokesman said: ‘After a full consultation process, the Bank confirmed to customers in November 2015 that it would close its personal banking service.
‘This followed the Bank’s withdrawal from providing retail banking services to Government departments and other corporate customers. Many customers have now moved to other banks, and we expect the exercise to be completed during 2017.’