Connect with us

Hi, what are you looking for?

Editor’s Pick

Labour seeks to protect face-to-face banking by forcing Commons vote

Labour is planning to force a vote on guaranteeing in-person banking across the country, following swathes of branch closures that have left local communities without face-to-face services.

The party’s amendment to the financial services and markets bill would give City regulators the power to ensure communities have regular access to “essential” in-person services, including opening new accounts, applying for loans, making and receiving payments and setting up standing orders.

That could mean protecting bank branches that would otherwise be at risk of closing, or creating hubs with shared services in poorly served communities.

Since 2015, nearly half of the UK’s bank branches have closed, as lenders cut costs and shift customers to online banking.

The amendment, which is tabled by the shadow City minister Tulip Siddiq, goes beyond the government’s proposals to ensure access to cash and support vulnerable people, including poorer or elderly individuals, who struggle to use digital banking.

Labour is also pushing for free-cash access, amid fears the legislation may result in consumers paying fees for withdrawals from cash machines or retailers.

Siddiq said: “We welcome that the government – after years of delay – has finally announced that it will be bringing forward access to cash legislation, but this bill does nothing to protect face-to-face banking or free access to cash services which the most vulnerable in our society depend on.

“It’s inevitable that payment and banking systems will continue to innovate, but the Conservatives’ failure to protect these services risks cutting off millions of people from essential goods and services. I hope the government does the right thing and supports Labour’s amendments.”

A Treasury spokesperson confirmed the government was bringing forward access to cash legislation, but did not directly comment on Labour’s in-person banking proposal. The Financial Conduct Authority (FCA) declined to comment.

Siddiq’s amendment is the latest addition to the wide-ranging bill, which is broadly aimed at overhauling City regulations originally inherited from the EU. If passed, it would also give regulators a secondary objective of promoting the competitiveness of UK firms.

Labour earlier this month revealed it would also use the bill to push for the first “national fraud strategy” in a decade, after consumers and businesses lost a record £1.3bn through fraud and financial scams last year.

The government is also considering whether to table a separate amendment that would controversially give Treasury ministers sweeping powers to override decisions by UK watchdogs including the Bank of England and FCA. Some senior officials have warned it could threaten the independence and international reputation of the country’s financial regulators.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

A market vendor arranges assorted vegetables inside the Quinta Market in Manila, Sept. 19. Vegetable prices continued to rise in November. — PHILIPPINE STAR/...

News

More policemen are deployed in Divisoria, Manila as the shopping area is expected to draw bigger crowds ahead of the holidays, Dec. 1. —...

News

PHILIPPINE STAR/ RUSSELL PALMA By Arjay L. Balinbin, Senior Reporter A PROPOSED MEASURE seeks to require National Economic and Development Authority (NEDA) Board approval...

News

BW FILE PHOTO THE MANAGEMENT ASSOCIATION of the Philippines (MAP) is seeking the creation of a public-private sector advisory council for various sectors, in...

News

UNSPLASH THE HOLIDAYS shouldn’t be used as an excuse to binge-eat, warned a dietitian.  Christmas is just around the corner and with it comes...

News

MANILA Electric Co. (Meralco) has secured a certificate of exemption from the Department of Energy (DoE) from the competitive selection process (CSP) for the...

You May Also Like

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.