Community bank vanishes into the long grass

appears firmly in the long grass.

Cefin Campbell, Plaid Cymru’s MS for Mid and West Wales, told The Herald of his disappointment at the news.

“I’ve long been an advocate for the roll-out of the Community Bank of Wales - viewing community banking as a necessary and innovative alternative to the gaping voids left on many high streets across Mid & West Wales following their abandonment by multinational banks.

fix for their banking woes.”

Jonathan Edwards MP told us: “This is a very disappointing development. Many of our communities are becoming deserts as far as banking services are concerned.

“Private sector banks are clearly removing services from our communities, and this void has serious repercussions for people who prefer faceto-face interaction.” economic vision.” behind by banks’ decision to move away from inperson services.

Mr Gething highlighted the volatile state of the mortgage markets as a contributing factor to the Building Society’s decision. He added a Community Bank is unlikely during the current Senedd term.

AS HIGH STREET banks continue to cut their counter services, one of the Welsh Government’s efforts to tackle the issue was quietly parked last week.

One MP said the decision leaves large parts of rural Wales “a banking desert”.

The day the Senedd went into recess, Wales’s Economy Minister Vaughan Gething announced that the Welsh Government’s partner in a Community

Bank for Wales had withdrawn from the project.

The Monmouthshire Building Society’s decision left the Welsh Government without a commercial partner to deliver a banking network for Wales.

The Welsh Government continues looking for another bank or building society to partner with. However, the idea now

“On previously raising the matter in the Senedd, the Minister recognised the profound need and vast extent of cross-party support for such a bank – which makes today’s statement even more disappointing.

“Whilst I appreciate the challenging economic environment – which has worsened no doubt by the reckless policies pursued by the Tories in Westminster – this is a deeply worrying development, and a further blow for many rural towns and communities that had long seen the Community Bank of Wales as a possible

Mr Edwards added that the Building Society’s decision allowed the Welsh Government to respond radically.

“I am disappointed the Welsh Government’s preferred partner has pulled the plug. However, it could be an opportunity for the Welsh Government to bite the bullet and introduce its own Welsh Public Bank.

“Several successful models could be followed, such as the successful Sparkassen banks in Germany. As well as offering financial products for individuals, a public bank would help underpin the local economy giving the Welsh Government more control to deliver its

Although Mr Gething re-iterated the Welsh Government’s commitment “to progress forwardlooking solutions”, he would not commit to a timetable for a Community Bank.

Instead, and through no fault of its own, the Welsh Government will rely on a sticking plaster solution.

He added: “I welcome the actions of Link, who are working with Banks to deliver new banking Hubs linked to the Post Office network. We advocate they include Credit Unions within future Hubs so their offer extends to community credit and lending facilities.”

Local MS Paul Davies, who flagged cross-party support for a Community Bank, highlighted bank closures in Preseli Pembrokeshire and other rural areas.

Mr Davies drew attention to those left

“In my constituency, there has been one bank closure after another on the high street. In fact, one high-street bank is closing a branch in St David’s, which will be a blow to the local area. As the nature of banking continues to change at a rapid pace, some people are left behind.”

Mr Gething said: “I suspect that the more interested partners are likely to be building societies, the mutual sector and actually have a network from which you might build a community bank.”

However, he cautioned: “The community bank is part of a longer-term vision rather than an immediate answer to the real challenges communities face.”

Which rather ignores one of the real challenges rural communities face: an ongoing loss of banking facilities.