Written question WQ84112

A statement on action the Welsh Government is taking to support the creation of a Community Bank in Wales was made on 14 December.

The issue of bank closures is of significant concern within many communities across Wales. Retail High Street Banks are retreating from our High Streets at an ever increasing and alarming pace. According to ONS data, the number of bank branches in the UK has fallen by 4,390 or 39% between 2012 and 2021. It is estimated that by the end of 2022 only 277 Bank and Building Society branches will remain in Wales.

The UK has one of the least diverse Retail Banking systems in Europe, dominated by a small number of very large banks. These Banks operate according to a shareholder-value business model seeking to maximise profits for their owners.

While the regulation of the banking sector is not a devolved matter, the Programme for Government commitment to support the creation of a Community Bank for Wales seeks to address the evident market failure in relation to the gap in provision, effectiveness and access to quality banking services in Wales.

Our vision for the Community Bank for Wales, is one that is based on the mutual model, owned by, and run for, the benefit of its members, rather than the maximisation of profit for shareholders. It will be a modern full service community bank, headquartered in Wales. It will provide access to bilingual products and services, through a range of channels including digital, online and in-branch.

It was announced on 14 December that the Monmouthshire Building Society intends to take forward its approach to delivering a Community Bank in Wales.

We are realistic in our expectations that Banc Cambria cannot replace the increasing number of branches closed by the High Street Banks. However, Banc Cambria aims to establish in the order of 30 new outlets over the next decade.

We expect the full commercial investment proposal to provide detail on sustainable outlet locations that in aggregate over the medium term, will provide access to a branch network for communities across the breadth of Wales.

Going forward, it is now appropriate for the Monmouthshire Building Society to lead on the communications and update on the project as it progresses.