Closure of bank branches

Subject: Closure of bank branches

According to recent figures from the European Central Bank1, the bank branch network is getting thinner by the day. Structural financial indicators show an average decline in the EU of 6.3%. There was found to be a decline in 25 out of 27 EU Member States, and at the national level the decline in the number of branches varied from 0.9% to 37%. According to press reports2, at least one bank branch closes every day in Belgium - a trend that has been exacerbated by the COVID-19 pandemic. In addition, the digitalisation of banking services has been gaining momentum, raising concerns that older people are being left behind as a result.

1. What does the Commission intend to do about the continuous closure of bank branches?

2. Against this background, are Member States complying with the obligations laid down in the Payment Accounts Directive (2014/92/EU, in particular Articles 16 and 17 thereof), on the basis of which consumers are guaranteed the right to open and use payment accounts with basic features?

1 European Central Bank, EU Structural Financial Indicators: End 2019, 8 June 2020.

2 https://www.standaard.be/cnt/dmf20210303_98178791

Answer given by Ms McGuinness on behalf of the European Commission (7 June 2021)

Closures of branches, sometimes coupled with an increasing digitalisation of banking services, is a general trend observed throughout the EU. These are the result of managerial decisions taken by banks regarding their commercial policy, and remain outside the scope of competence of the Commission. Nonetheless, while promoting the use of digital payments, the Retail Payments Strategy (3) emphasises the need to maintain availability and acceptability of cash also in order to prevent financial exclusion. In this regard, an expert group set up by the Commission as part of the strategy will seek technical input from Member State experts on the issues of acceptance and availability of cash to ensure a healthy and efficient circulation of cash in the EU.

The Payment Account Directive (4) provides the right to a payment account with basic features and requires Member States to ensure that such a basic account is offered by all credit institutions or a sufficient number of credit institutions to guarantee access thereto for all consumers in their territory. However, it does not set any requirement for a specific number of bank branches in a Member State or region. The Commission services are currently assessing the implementation of the Payment Account Directive in the Member States and are preparing a report on the application of the directive.

⋅1∙ European Central Bank, EU Structural Financial Indicators: End 2019, 8 June 2020.

⋅2∙ https://www.standaard.be/cnt/dmf20210303_98178791

⋅3∙ https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52020DC0592

⋅4∙ https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32014L0092