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RBS boss tells MPs branch closures 'difficult' but necessary | |
(about 11 hours later) | |
RBS chief executive Ross McEwan has told MPs he recognised that customers were angry about branch closures but they were commercially necessary. | |
He is appearing before Westminster's Scottish Affairs Committee to explain why the bank is closing 62 branches. | |
Committee chairman Pete Wishart said RBS had suffered a loss of reputation because of its plans. | |
Mr McEwan said change was difficult and no closures were "taken lightly". | |
He added that after this phase of branch reduction, that part of the business would not be looked at again until 2020. | |
Ahead of Mr McEwan's appearance, committee member Deidre Brock said the bank "still has plenty of questions to answer" about the planned closures. | |
The SNP MP also said more details were needed on RBS's plans for the reprieve of 10 branches. | |
The committee was informed that eight out of the 10 were classified as the "last branch in town" and more than nine miles from the nearest RBS bank. | |
The Melrose and Kyle branches were also included, although neither fell within the bank's criteria for remaining open. RBS said that in the Melrose case the reduction in banking services in the south of the Scotland was recognised and in the Kyle case the mobile banking van was located in the village. | |
In advance of the committee hearing, she said: "The bank is owned by the taxpayer and the chief executive needs to shed light on the decision-making process that is leaving so many communities across Scotland without physical banking services. | In advance of the committee hearing, she said: "The bank is owned by the taxpayer and the chief executive needs to shed light on the decision-making process that is leaving so many communities across Scotland without physical banking services. |
"We need details on the branches that have been saved from the axe after a hard campaign by local communities and the SNP." | "We need details on the branches that have been saved from the axe after a hard campaign by local communities and the SNP." |
Despite criticism that it could leave some communities without any banking facilities, Mr McEwan has defended the plans, saying the moves were in response to customer choices and also said mobile banks could play a greater role. | Despite criticism that it could leave some communities without any banking facilities, Mr McEwan has defended the plans, saying the moves were in response to customer choices and also said mobile banks could play a greater role. |
When asked by committee chairman Mr Wishart if he recognised the anger of customers in Scotland, the banking boss said: "I do recognise that customers are very disappointed that their local branch is closing." | |
RBS is not the only bank to close branches in Scotland, but its plans are the most high-profile. | |
On Monday, disability and rural campaigners questioned if the closure plans breached equalities legislation. | On Monday, disability and rural campaigners questioned if the closure plans breached equalities legislation. |
Scottish Rural Action and Disability Equality Scotland have joined Scottish government minister Jeane Freeman to seek clarity on the legal status of the bank's plans to close branches across Scotland. | Scottish Rural Action and Disability Equality Scotland have joined Scottish government minister Jeane Freeman to seek clarity on the legal status of the bank's plans to close branches across Scotland. |
The campaigners have written to the Equality and Human Rights Commission to ask if the proposals would be in breach of the Equalities Act 2010. | The campaigners have written to the Equality and Human Rights Commission to ask if the proposals would be in breach of the Equalities Act 2010. |