Edinburgh has lost 60% of it’s bank branches in just seven years
The closure of more than a third of Scotland’s banks since 2010 is set to come under the microscope, as the Scottish Parliament’s Economy, Jobs and Fair Work Committee calls on local businesses and consumers to ‘speak out’ on the impact on local communities and economic growth.
Bank closure numbers vary across Scotland. According to 2018 figures from the Office of National Statistics (ONS)*:
- Renfrewshire, West Dunbartonshire, Glasgow and East Ayrshire have seen its bank numbers reduce by around a half;
- In Aberdeenshire, Moray, Dumfries and Galloway, Dundee and Falkirk bank numbers have decreased by around at least 20%;
- The city of Edinburgh has experienced the greatest decrease of more than 60% of its banks.
Reasons for the steep decline in numbers of Scotland’s banks are said to be varied and range from the impact of the financial crisis and new regulatory costs bearing down on banks’ profits; to falls in demand for the use of cheques and increased use of electronic payment services. **
In its inquiry, the Committee will scrutinise the impact of these bank closures on local businesses and economies, including tourism and SMEs; and on consumers. The Committee has today launched a survey and a call for written views asking personal and business banking customers for their views on bank closures.
Convener of the Economy, Jobs and Fair Work Committee, Gordon Lindhurst MSP said: For Scotland to lose more than a third of its banks in just 7 years seems a staggering statistic. This inquiry will work to respond to significant public concern that the impact of closures is felt most in places where no viable alternative exists.
“We are calling on small businesses and consumers to speak out on vital questions, such as: Will closures of local banks have an impact on your business? What is the impact of local ATMs closing or imposing charges for transactions? And how do bank closures impact on your local high street?
“The committee wants to know what can be done to help remedy a seemingly relentless decline in Scotland’s banks. Crucially, what are the alternatives that can help support local businesses and communities, and enable them to thrive for the benefit of all?”
The Economy, Jobs and Fair Work Committee will examine the impact of bank branch closures on local businesses, consumers and the Scottish economy and explore what steps can be taken to address any issues identified by the Committee. It will hear views and opinions from a range of organisations and individuals at formal committee meetings at the Scottish Parliament from April 2018, and will meet with individuals and organisations across Scotland to hear their views first-hand.
The Committee’s report is set to be published in summer 2018.
The Clydesdale Bank branch in Davidson’s Mains will join the lengthening list of local branch closures when it shuts it’s doors for the last time in June.
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