November 09, 2009

The Government should create community banks rather than just adding to the number of existing high street outlets, according to green campaigners.Chancellor Alistair Darling this week announced plans to sell off the profitable parts of banks it nationalised last year during the credit crunch.The assets of the Royal Bank of Scotland, Northern Rock and Lloyds Banking Group will be offered as three new-look high street banks to increase competition and choice in the industry.

This will see the resurrection of the TSB after a 15 year absence from our high streets since being bought by Lloyds, the return of Williams & Glyn, which operated in the 1970s and 1980s before being swallowed by RBS, and a new Bank & Co created out of the good parts of Northern Rock.Existing banking groups will be barred from buying the new outlets as part of the move to encourage competition and bring in foreign investors.