THE UK’s last independent savings bank is to close its accounts after more than 180 years.
Unite union said the Airdrie Savings Bank (ASB) had been shackled with extra costs due to regulatory changes after the 2008 financial crash, claiming it has now become “yet another innocent victim of casino bankers”.
The collapse will cost 70 jobs and all 40,000 customer accounts will be closed by April.
Meanwhile, the bank’s loan book will be taken on by the TSB and the company, founded in 1835, will be gone by autumn.
Chief executive Rod Ashley said the decision has been taken in the best interests of customers: “In taking this difficult decision, the trustees have taken full account of the bank’s proud 181-year-old history.
“However, we are in absolutely no doubt that acting now from a position of financial strength is both prudent and responsible, and in the best future interests of our customers.”
While the news was described as a “shock” by Unite, it follows the closure of four branches in August 2015. The move away from traditional branch-based banking to online services is said to have contributed to the move.
All staff at the bank’s head office and its branches in Airdrie, Bellshill and Coatbridge will now shut.
The announcement comes just days from the bank’s anniversary on January 21. It began trading from a church and moved into two local shops before opening its first official branch in 1883, expanding into Coatbridge in 1916 and spreading as far afield as Falkirk at its peak.
Bank staff were informed of the decision at a meeting yesterday.
Wendy Dunsmore of Unite said: “This announcement is a bitter disappointment and will come as a shock to many. Unite will be doing everything we can to support our Airdrie Savings Bank members during this incredibly sad and difficult time, and to make sure their employment rights are protected.
“Our understanding is that the bank has had to meet extra costs due to increased regulation following the financial crash of 2008. So Airdrie Savings Bank has become yet another innocent victim of casino bankers.
“Even at this late stage, we would urge the Scottish and UK Governments and the banking regulators to work with us to explore all options for saving jobs.
“One of Unite’s first steps will be to talk to the Scottish Government’s Financial Services Taskforce which was set up during the crash to help redundant workers back into employment.”
The bank had become unique in the UK financial sector for continuing to operate on mutual principles, with no shareholders.
Alex Neil, MSP for Airdrie and Shotts, said red tape had killed off the institution. He said: “After the financial crash of 2008 it was probably, for a while, one of the few viable banks left in Britain. This is the end of an era.”
“All those people, past and present, who made the ASB the success it was should be proud of themselves.
“Events out with their control have led to this sad decision, but the bank’s long and proud history should never be forgotten.”
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel