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<p>Branch closures can be difficult for the communities affected and the Government
pays close attention to this issue. However, the decision to close a branch is a commercial
one for a firm, and Government does not intervene in those decisions.</p><p> </p><p>However,
the Government is equally clear that as banking providers seek to respond to technological
advances and changes in customer behaviour, they must also consider carefully the
needs of those who still rely on their local bank branch. Since May 2017, the major
high street banks have been signed up to the Access to Banking Standard, which commits
them to work with customers and communities to minimise the impact of branch closures
and put in place alternative banking services.</p><p> </p><p>The Government also supports
the Post Office Banking Framework Agreement which enables 99% of the UK’s personal
and 95% of the UK’s small business customers to withdraw money, deposit cash and cheques
and check balances at any one of the Post Office’s network of 11,500 branches.</p><p>
</p><p> </p><p>While banks do have to comply with competition law, there is no specific
regulation that prevents banks from sharing branches or other premises where their
strategies align. The Government therefore has no plans to update competition law
on this basis. Government does not intervene in these commercial decisions, but will
continue to encourage banks to think creatively about how they can ensure that consumers
can access a wide range of banking services on a sustainable basis. For example, NatWest,
Lloyds Bank and Barclays are trialling shared business banking hubs in 6 locations
across the UK in the coming weeks.</p>
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