Pandemic puts banks under threat - as number of West Midlands high street branches falls by more than fifth in eight years

A total of 235 branches have shut down since 2012 – including around 60 in the Black Country – in what has today been described as an "epidemic" of bank closures.

They include Yorkshire Bank in Dudley, which closed in 2018, HSBC branches in Brownhills and Smethwick, which went in 2016, and Barclays in Wednesfield, which shut last week.

According to figures from the House of Commons Library, across the country nearly 3,000 branches have closed their doors for good over the same period, reducing the number of high street banks by 22 per cent.

It comes as fears grow that more branches will disappear as a result of the coronavirus pandemic, which saw TSB temporarily close a fifth of its branches, and Lloyds close 200 branches.

TSB is set to permanently close branches in Lichfield, Stourbridge, Cannock and Smethwick later this year.

Bank chiefs have blamed low usage for many of the closures, saying that more people were using online banking.

'Alarming'

The Lib Dems have today launched a new national strategy aimed at preserving high street banks. It would see branches only permitted to close after a a revamped local consultation process and with the permission of the Financial Conduct Authority.

It would replace the current system – the access to banking protocol – which was agreed between high street banks, consumer groups and the Government.

Lib Dem leadership candidate Layla Moran MP, said: "High street bank closures have become an epidemic in the last few years, blighting our town centres, hurting particularly elderly and more vulnerable customers, and local small businesses whilst making healthy profits for themselves.

"We are seeing these branches close at an alarming rate. My plan came about after to speaking to Lib Dems in the area so this plan really is 'born in the Black Country' and if elected, it will become a key part of my party's policy.

"It’s time our banks recognise instead that they are a utility providing an essential public service."

Under the plans local authorities would be given a veto blocking a branch closure for 12 months to allow another bank to be brought in.

The veto would be renewable after 12 months and would be enshrined in legislation by adding it to every banking licence given out by the regulator.