The Welsh Government is working with Monmouthshire Building Society to accelerate plans for a community bank - Banc Cambria.
The proposed retail bank, that aims to have 30 branches across Wales, will still need to secure regulatory approval from the Prudential Regulation Authority and the Financial Conduct Authority and with required banking reserves and start-up costs it will need to secure funding running into tens of millions of pounds.
The bank is a commitment in the Welsh Government's programme for government.
Operating the community bank the Monmouthshire could potentially use its current network of 10 branches and 14 agencies - which are predominantly based in south-east Wales apart from one in Mid Wales - as potential co-location space for branches of Banc Cambria.
However, it will have to acquire new sites across Wales, including those in North and West Wales. This could see the use of existing local authority and Welsh government owned buildings, as well as those operated by credit unions.
The required reserves could from the mutual itself, Welsh public sector pension funds and the Welsh Government.
While it will have a high street presence, Banc Cambria could see the majority of customers being served digitally.
According to ONS data the number of bank branches in the 海角视频 has fallen by 4,390, or by 39% between, 2012 and 2021.
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Which? estimates that by the end of 2022, only 277 Bank and Building Society branches will remain in Wales. The aim is to launch Banc Cambria in 2023.
Economy Minister, Vaughan Gething said: “Our vision for the Community Bank for Wales is one that is based on the mutual model, owned by, and run for, the benefit of its members, rather than the maximisation of profit for shareholders. It will be a modern, full service community bank, headquartered in Wales, providing access to bilingual products and services, through a range of channels including digital, online and in-branch.
“The bank will facilitate local investment and enhance community wealth-building, recirculating savings into loans and preventing capital drain. We very much hope it will provide a positive impact on communities and high streets across Wales, improving access to everyday banking services for all citizens regardless of income or wealth, as well as for small businesses across the whole of Wales.
"Delivery of a community bank is a good fit for Monmouthshire Building Society - a Welsh mutual headquartered in Newport. They have been serving and supporting members and communities across South and West Wales to save and flourish for over 150 years. As a mutual, they are already a purpose-led organisation, providing communities with access to financial help and support in locations that are convenient for them.
“Whilst there is still much work to be done, with key milestones and further decision points ahead for both the Welsh Government, the Society and Cambria Cydfuddiannol Ltd, we remain committed to providing all appropriate and necessary support in order to help accelerate the establishment and roll out of Banc Cambria across Wales.”
Chief executive of Monmouthshire Building Society, Will Carroll, said: “Whilst this project is in its early stages, the Society is delighted to be working with Welsh Government to bring to life the aspiration of a community bank for Wales. We believe that delivering a community bank will support the Society’s purpose to bring more relevant services to more members in more places in Wales.”
Over the past two years, the Welsh Government has supported exploratory work undertaken by Cambria Cydfuddiannol Ltd (CCL), a co-operative society established to explore the creation of Banc Cambria as the Community Bank for Wales. It has secured two tranches of funding support as a start-up from the Welsh Government.
CCL’s Chair, Alex Bird said: “The Monmouthshire are a perfect fit to deliver Banc Cambria. As a modern mutual their focus is on supporting communities and delivering value to members. Working with the team at Monmouthshire, it is clear they are a brand to trust in the marketplace and we are confident that the values we have developed will be in safe hands with them.”