Competition and choice in retail banking - Treasury Contents

Further written evidence submitted by the Campaign for Community Banking Services

Since the August evidence submitted by CCBS, and acknowledged by the Committee Secretariat on 25 August, details of further branch closures and announced closures by HSBC have been received.

For 2010, ie since the data submitted, a further 55 (following 75 in 2009) will be closed of which 20 are "last bank in town"' and a further 14 leave another bank in that situation.

Of the 780 remaining communities in England and Wales which have only one bank, HSBC has more than halved its share since 2003 to 9% leaving Barclays 29%, Lloyds 25%, NatWest 31%. The HSBC closures have not reduced the number of communities having only two banks although that bank necessarily now features less in the composition of the approx 500 communities in that category.

The fear is that, without the network and competition protections referred to in our submission, other banks will follow the HSBC example in short order. The Issues Requiring Attention section of our submission assumes greater urgency in the light of this later information.

September 2010

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