Marion Poole, head of the Association of Friendly Societies, said ministers were wrong to rely on the goodwill of high street banks. The irony is that in the drive to widen the availability of financial services to those traditionally excluded, the government is relying on the same organisations that have been guilty of ignoring the market. City analysts predict that 3,000 bank branches will shut in the next five years. This week Barclays announced cuts which will reduce the number of branches by 200, while NatWest and Northern Rock are also planning cuts. New laws considered Tim Sweeney, the director of the British Bankers' Association, said the challenge was not for the banks alone.
Supply is one thing, demand is another.
The Treasury rejected calls for legislation. Campaigners for local communities have been urging it to introduce laws on the model of the US Community Re-investment Act. This requires banks to re-invest a slice of their profits in the communities they serve. However, Miss Johnson said that if banks had not shown progress on the issue of exclusion within a year, the government would consider further measures, including legislation. The BBC is not responsible for the content of external internet sites Links to other Business stories are at the foot of the page.