Griggs Probes Impact Of Bank Branch Closures

Britain's biggest banks will attempt to head off renewed criticism of their branch closure programmes on Friday even as their high street presence shrinks at an unprecedented rate.

Sky News has learnt that the British Bankers’ Association (BBA) will announce that Russell Griggs has been appointed as the independent reviewer of an agreement struck with Sir Vince Cable, the former Business Secretary, during the final months of the coalition government.

Mr Griggs is a well-known figure in the industry, having acted in a similar role in relation to banks’ lending to small business customers.

The protocol agreed last year obliged banks such as Barclays (LSE: BARC.L - news) , HSBC and Lloyds Banking Group (Other OTC: LLOBF - news) to work with local communities to assess the impact of a branch closure before it takes place - and to establish alternative banking services for affected branches' customers.

It (Other OTC: ITGL - news) failed, however, to compel banks to retain the final remaining branch in a town or to reduce the number of sites they planned to vacate, sparking criticism from community campaigners.

Since the framework was outlined, branch closures have continued apace.

Last month, Lloyds - the UK's biggest retail bank - announced the closure of a further 21 outlets, with all of the major lenders arguing that changing consumer habits have meant their historic branch footprint has been rendered an anachronism.

The Campaign for Community Banking Services (CCBS) said in March that 177 'last banks in town' were axed in 2015, with a further 48 closed during the first quarter of this year.

Mr Griggs is expected to undertake a review of the effectiveness of the protocol and make relevant recommendations.

His role will not, however, include any formal powers compelling banks to reverse decisions about branch closures.

The BBA declined to comment on Thursday.