Tynedale Community Bank - Tomorrow we will update locals on our community lending

What is it?
Tynedale Community Bank is the brainchild and product of the work of many locals but Lauren Langton has been the lynchpin of our efforts to provide a not for profit community bank that is one step above a credit union and more local and accommodating than a High Street Bank.
High street banks have closed hundreds of branches in recent years - many of them in the North East.
Our new Tynedale Community Bank is an old-style savings and loans business; it is similar to a credit union, but on a larger scale.
People want a community lender, based in their community, with the profits going back to the community. I am absolutely certain that large numbers of people will make the decision that some or all of their money should be in our community organisation rather than a multi-national bank based far away. Why would you want to bank with a bank in Frankfurt or Shanghai or London when you could trust your money to a community bank, which is helping your local community? Thus far we have had a lot of success.

How safe is my money?
Tynedale Community Bank is regulated by the Financial Conduct Authority and the Prudential Regulation Authority, like the big-name high street banks, to ensure savings are protected as they would be anywhere else. Your money is fully regulated and protected. We are in partnership with the Prince Bishops Bank in Stanley, County Durham.

Taking on the pay day lenders: 
The bank will help fulfil the Church of England’s aim of ensuring people no longer have to rely on “payday lenders” which provide loans but charge massive interest rates. Payday lender Wonga currently advertises loans on its website with interest rates of more than 1,000%.
In 2013 the Archbishop of Canterbury, Justin Welby, said the Church would put Wonga out of business by helping local financial co-operatives play a much bigger role in helping people with money problems.

Cross Party Support:
The Labour MP, North Durham MP Kevan Jones, who is involved with the Princes Bishop Community Bank in Stanley, County Durham, is also a supporter. Kevan and I disagree on several things but we are as one on why the Tynedale Bank is a wonderful thing. We have worked together hand in glove to make is work.
At our launch in November Kevan Jones said: “People tend to look at rural areas and think there is no poverty there, but there is financial poverty in these communities. That’s why a bank like this can make such a difference.”

Media / TV coverage:
This is the ITV take on our launch. 
http://www.itv.com/news/tyne-tees/update/2015-11-06/archbishop-of-york-opens-northumberland-community-bank/

The Chronicle has done a piece on the launch last November here:
http://www.chroniclelive.co.uk/news/north-east-news/archbishop-york-open-new-community-10367546

Our website:
http://www.princebishopscommunitybank.org.uk/tynedale

Update Meeting:
We are in the Beaumont Hotel this Friday from 9.30-12. Lauren, Alastair, and other members of the team will outline what we have done, the nature of the deposits, the way in which we make loans, and how the bank works. You can also sign up for savings or a loan then.
Please come down and find out more.

2016 will see the Tynedale Community Bank truly take off

A Local organisation, providing Local savings and loans, to local people, with dividends and profits going back to local people and local causes.
I do not think this is too much to ask.
And today this is a reality.
I want a bank that is based in the community, run by someone from that community, with profits going back to that community - like a German Sparkassen  .... rather than that which you call Lloyds / HSBC or another of the big banks, who are based so far away in so many ways, and who struggle - despite the best efforts of local staff - to be a truly local bank.
To that end we have done many things:
First we have changed the law to make it easier to set up local community banks and enhanced credit unions. I spent a large part of the last parliament doing this.

Then we started by setting out our vision and an idea of a community bank / beefed up credit union would look like and work upwards from that. For more details of what our plans are read here:
http://www.saveoursavers.co.uk/banks/guy-opperman-mp-on-plans-for-regional-banks-and-how-to-fix-the-banking-industry/

We have set out to convert people locally with regional banking events in Gateshead and elsewhere covered by the media and featuyring local successes in banking:
http://www.thejournal.co.uk/news/north-east-news/guy-opperman-hosts-meeting-regional-4391940

Finally, we are taking steps to expland our offer to cover not just those in fuel poverty but anyone who is struggling with pay day lenders and / or are unbanked; we are also unashamedly seeking to attrract middle class savers, which is the perennial failing of an old style credit union. This has been a journey of many years but we have much more news to follow. I am spending a lot of the spring and summer taking this forward.
We are now beginning to take shape locally with
- a number of local champions across Tynedale
- a proper board of key local supporter and community leaders
- a partnership, and common bond, with the Prince Bishops Bank in Stanley, County Durham
- a formal proper launch today, after several months of soft launches, visits to interested parish councils, oil buying clubs, and discussions with clergy and commuinties.
We are fully regulated and your money is as secure as is it were in a high street bank.
As always, we need volunteers interested in contributing by action or outreach, fundraising and engaging with the wider community. This is an utterly apolitical project. Anyone interested should get in touch with me and I will pass on details of the key players taking forward this exciting project in our community.
Or you can visit our website at www.tynedalecommunitybank.org.uk
Application forms can be found there too.

Speech on the need to create local community banks

Wednesday in the House of Commons gave me the chance to talk about what the Coalition government has done to try and make it easier to set up new challenger or local banks to take on the big banks. There is huge progress being made. The full speech is here:
 http://www.theyworkforyou.com/debates/?id=2015-02-25a.334.1&s=speaker%3A24962#g354.2

Dozens of new banks being set up as challengers force their way in

As the High Street Banks fade from the High Street, with some behaving shamefully as bully banks, I am delighted that new entrants are springing up. I am backing Atom Bank in the North East but we are also working really hard to support the existing Northumberland Credit Union and to expand community banking in Tynedale. In addition true Co-Operatives are still rightly supported in our communities and I do not believe that the disastrious exploits of Paul Flowers is stopping people committing to local community cooperatives and lending by local institutions not multinationals based hundreds of miles away where always the computer says no.

I recorded a piece for the BBC Look North yesterday on this issue and the papers are telling the story of the many new national and local banks springing up all over the country:
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/10952024/FCA-Dozens-of-banks-spring-to-life-after-red-tape-cut.html

Church backed local banks and credit unions can change local communities

Off to breakfast summit hosted by the Bishop in the House of Lords today to discuss how church can help local banks and credit unions thrive and ensure that the unbanked, fuel poor and those at the mercy of pay day lenders can be helped by a community led banking approach.

Only local community banking will save us as High Street branches close

I remain convinced that local community banks are the solution to the problem and the disconnect between the London based banks and their rural customer. The Courant have done a really good article which is worth reading on the subject.
http://www.hexhamcourant.co.uk/news/2.2978/tynedale-businesses-pay-the-price-for-bank-closures-in-rural-areas-1.1116132

The Weekend Read: Community banks

I had a meeting on Thursday with the Northumberland Credit Union where I talked to them about my hopes for local banking and the transformation of savings and lending in Tynedale. Last week I gave a speech in the House on Local banking:
Guy Opperman (Hexham, Conservative)

"Greater competition, the desire for local banks and the Labour policy to close regional branches are the issues of this debate. I have held two local banking conferences over the past six months—one in Gateshead on 6 June and the other in London in December—and they were attended by in excess of 350 people from various organisations, banks, accountancy firms and start-ups. It was very striking that, contrary to what Mr Meacher has recounted, there was a tremendous desire for a large number of new banks, and that is in fact the reality.

I have met the likes of Metro, Aldermore, Handelsbanken, obviously Virgin, Cambridge and Counties—it was set up out of a local authority pension fund—and the Hampshire bank. A fantastic bank has been put forward by the Unite union, on behalf of Labour, in Salford, and it is doing wonderful work. I have met Alex, who is the linchpin of that. He is a fantastic lad, who is doing great stuff to try to transform how that local community bank provides services to the local community of Salford.

I therefore disagree with the doom and gloom approach about there being no competition or new entrants. Certainly, when I meet those from the Financial Services Authority and the Prudential Regulation Authority, including Sam Woods and all the individuals involved with the regulators, they tell me that they have had in excess of 25 separate pre-applications that they are now considering.

On 23 April 2012, when we debated local banks and the need for greater competition—this is my seventh speech on local banking in the House in the past three and a half years—the Labour party chose to vote to delete clause 5 of the Financial Services Bill, which was designed to create greater ease for new entrants to enter the market and related to how far competition can encourage innovation. I welcome the fact that the Opposition seem to have changed their policy and would now like more competition, but the proof of the pudding is always in the eating, is it not?

An announcement has been briefed to Nick Robinson of the BBC that the Labour party, if it gets into government, will ultimately close regional and local branches. As my hon. Friend Steve Brine made clear when he questioned the shadow chief Secretary, Chris Leslie, that would have a massive impact on our local communities.

I am certainly trying to have more bank branches opened in my area. I am negotiating with my credit union to see how far it can do that. Similarly, I am trying to create new banks in the north-east. As my hon. Friend Ian Swales has made clear, there is great scope for new entrants to do so. The very fact that the big five are so complacent and have had so many problems, gives new entrants an opportunity, which is certainly being exploited by all those we have spoken about today.

In that context, I want briefly to touch on two matters—credit unions and the Church, neither of which have been discussed. It would be a failure of this debate if it did not deal with both of them. All of us should support our credit unions. I am certainly wholeheartedly behind the Northumberland credit union. We must acknowledge that even though this Government have done more to give credit unions greater clout, power and ability to lend, credit unions are still incapable of filling the banking void and overcoming the current difficulties.

The only way forward is the creation of local community banks built on a credit union. I can give the House at least three examples. I have already mentioned the bank in Salford, which is the former Salford credit union. The Glasgow credit union is probably the biggest and most successful in the country: it is effectively a bank in all but name. Finally, I have the Prince Bishops community bank in Durham, which is the former Stanley credit union. All are very successful and have great potential. We need to follow such examples.

To touch briefly on the Church, I welcome the fact that Justin Welby is the new Archbishop of Canterbury. It is savage irony that 500 years have had to pass for us to have the new type of God’s banker, who is encouraging the Church to become involved in banking. It can only be good if the clergy move from being reactive to poverty and social deprivation—to their great credit, they are amazingly good at reacting in that way—to being proactive.

I suggest that the Church has a role, acting with their credit unions and local community banks, effectively to become the offshoots and outlets of those community banks. After all, all the vicars that we, as constituency MPs, know and deal with know which people are in great social deprivation, going to the food bank or having problems with high-cost credit and need debt advice. There is massive scope for the Church to take a greater role by dovetailing churches with credit unions and community banks. I welcome the fact that the Church has chosen to buy branches of Williams and Glyn’s bank, and is setting something up so that we can go forward. If we can do that and become more proactive in our local communities, a huge amount can be done.
In seven days’ time, I will meet my Northumberland credit union in Hexham to discuss how we can promote the idea of taking the credit union, building it up and creating a larger bank to make the situation so much better. If we do that, we will have in our regions and communities a bank that we can trust, with a proper brand name and identity, and one that is part of the community, rather than something based in London or Frankfurt and completely divorced from that community. That is the problem that we all face and have identified and, to their great credit, that is the problem that the Government have made great efforts to address.
In the interests of brevity, I will draw to a close, but I very much urge all parties to make sure that they get behind local community banks. We have not always done so, but we should do so in the future."

Great News - Archbishop Justin Welby announces Credit Union expansion plans

http://www.abcul.coop/media-and-research/news/view/410

Why does Labour want to close rural branches of banks? We should be opening branches not forcing them to close

The latest plan from the two Ed's is bizarre. They accept that their plan would result in the closure of bank branches - this would be bad news for Tynedale. The independent Governor of the Bank of England has a critique of the plan yesterday in the Commons on being questioned by the all party Treasury Select Committee
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/10575245/Mark-Carney-rejects-Ed-Milibands-bank-shake-up-plan.html

The Church is right - pay day lenders and the banks themselves need sorting

http://blogs.spectator.co.uk/coffeehouse/2013/12/coe-takes-aim-at-payday-lenders-but-what-about-the-banks/
Really pleased to see the recent advert by the Church of England launched yesterday morning, but as the Spectator reports the problems are twofold, and include the banks and their approach. I have lost count of the number of complaints from constituents I have received at the approach of the banks; I have also endured an interesting time myself with a high street lender, who have behaved terribly, and have now apologised unreservedly.  It took some time to sort for me, but many constoituents would really have struggled.
I am pleased to say that I am meeting my credit union tomorrow in Hexham, and a church leader, to talk about this exact problem of high cost credit, the extension of credit unions and the need for more local action on this issue.

The sad demise of the Co-Op Bank shows why we need local community banks

If ever we needed reminding of why the German Bank Model of the Sparkassen - in the form of local community banks that look after their area and who do not do speculative and risky lending - then the disaster of the Co-Op is the best guide. First and foremost, this is a disaster for members. On this point I will finish but let us first look at the history.

In years gone by, the Co-op, that pillar of the mutual ideal, was seen as reassuringly solid, and secure. Its shops and funeral services were deliberately lacking in ostentation. Its bank was boring, too, regarded by the outside world as a risk-averse repository for the monies of charities, non-governmental organisations and people who didn’t really like the idea of banks – but accepted the need to have one.

When the banking sector crashed in 2007 the staff and customers of the Co-operative Bank could stand back, tut-tut and shake their heads, sure in the knowledge that their forebears, the thrifty weavers who in 1844 created the Rochdale Society of Equitable Pioneers, were up there in heaven, shaking their heads, too. And then along came Paul Flowers. Rarely does that insatiable beast known as the 24-hour news cycle enjoy fare as rich as the Reverend Paul Flowers. Clerics have often been exposed as possessing feet of clay but the rotund Methodist minister, former Labour Councillor, advisor to Ed, director of the Co-Op Bank in 2009, and its chairman shortly thereafter, before becoming the architect of the Bank's downfall ... is in a league of his own. I genuinely do not know where to start on his fall from grace.

However, he has my sympathies, because when the media get their hooks into you it is not pretty, whatever his misdemeanours. I am certain he has very good qualities and will be very sad now.

But the reality is that the UK mutual sector is now damaged by two spectacular collapses. The UK’s oldest mutual insurance company, Equitable Life, was brought low by promising more than it could afford to pay out to policyholders and savers. I have spent countless days as an MP trying to help those who lost their life savings in Equitable Life. The mutual sector’s largest bank, the Co-op, has just reported large losses, insufficient capital and a Chairman who lacked the qualities of mind and character to be a successful bank chairman. It is not bust but in real trouble needing a bail out.

Noone could have a problem with a good well run mutual. This recent history should, however, be a warning of the special risks mutuals can pose. With no shareholders to provide capital and insufficient conventional profit reserve some financial mutuals can be very risky. However, if anyone came to our London Local Banking Conference will know – there are always dangers when the pursuit of profit becomes the motive of the business. Profit should result from a good service, knowing your customer and knowing your market. I again make the point that not one of the German Local Banks went bust and have actually increased bank lending in the recession.

As to the Labour party, Ed Miliband has to answer for the millions of unpaid Co-Op lons to the Labour Party, the £50,000 donation to Ed Balls, and why these moneys are linked to the recent meetings with Flowers. As to Balls the scene last Wednesday with my colleague Jason McCartney, who is a Co-Op member had to be seen to be believed. For my part this does, however, strengthen the case for Local and Community banks - not weaken it.

The future for regional banks event 6/11 with Sajid Javid

Very excited that we have now sorted the agenda for our second regional banking event
The Future for Regional Banks event takes place next Wednesday at
Sixty One Whitehall London SW1A 2ET Over 150 people are coming, including over 15 media organisations. We are keeping speeches short so that we can get as many questions in.
There is still time to come along. There is still time to set up your local bank!

Agenda
09.00-09.40   Registration
09.40-09.45  Welcome
Guy Opperman, MP for Hexham, event chairman

09.45-10.00   Introduction
Anthony Thomson, Founder & Former Chairman of Metro Bank & Chairman of the Financial Services Forum & the National Skills Academy for Financial Services                                  

10.00-10.15   Speech -  Sajid Javid, Financial Secretary to the Treasury and MP for Bromsgrove

10.15-10.30  1st Panel Discussion
        Jeff Prestridge, Editor, Mail on Sunday (7-8 minutes)
         Sam Woods, Prudential Regulatory Authority (7-8 minutes)
        Sajid Javid, Financial Secretary to the Treasury and MP for Bromsgrove
        Anthony Thomson

11.00-11.30   Coffee Break

11.30-12.00   2nd Panel Discussion
Nicola Wildman, Manager, Banking Authorities, The Financial Conduct Authority (10  minutes)
Thomas Keidel, Director of Financial Market Relations, German Savings Banks Association (10 minutes)
Lakshman Chandrasekera, Chief Executive, London Mutual Credit Union (10 minutes)
12.30-13.30   Buffet Lunch

UPDATE: Jeff Prestridges short article on the conference from Sunday's Mail on Sunday
Fierce competition – supported by easy switching – is key to ensuring consumers are better served by the financial services industry. It’s an argument leading business academics such as David Llewellyn, Professor of Money and Banking at Loughborough University, have been banging on about for ages.
Llewellyn is a big believer in a diverse marketplace populated by vibrant building societies, credit unions and friendly societies as well as shareholder-owned banks and financial firms. And it’s a theme that will be taken up this Wednesday when a mix of bankers, regulators and politicians meet to explore the appetite for the creation of numerous regional banks that could challenge the status quo.
The one-day conference is being spearheaded by Anthony Thomson, former chairman of challenger bank Metro. He is adamant more banks are needed so better financial products are offered, customer service improves and mis-selling is brought to an end.
Thomson wants more banks that are community focused and alive to the financial needs of growing local businesses – the bedrock of our economy. Such a model is one Handelsbanken already adopts here with great success.
With the regulators making it slightly easier for new banking entrants to be authorised, he is confident 15 new banks could open in the UK in the next five years. Let’s hope he is right.

Regional Banking debate

This week in the House of Commons we have debated Regional Banks and the changes brought about by the Coalition Government. On Monday we had a heated debate on the proposed changes and then on Tuesday I was able to make a short contribution to the Third Reading of the Financial Services (Banking Reform) Bill:
http://www.theyworkforyou.com/debates/?id=2013-07-09b.252.0&s=speaker%3A24962#g258.0 The Speaker cut me short but I remain convinced that we shall soon see local and regional banks springing up in the North East.

BBC Radio Newcastle interview -

My interview on BBC IPlayer:
http://www.bbc.co.uk/programmes/p0193gks
2.07 and 30 seconds into the broadcast for 10 minutes
If you want to hear a good debate on the merits or otherwise of a regional banks this is a great debate
Three thoughts to remember from the Baltic debate on Friday
i). In Uk 75% of banking is through the big 6 London banks, many of whom failed in the financial crash
In Germany 75% of banking is through the Local Banks - none of whom have failed in the financial crash

ii). Profit should result from providing a good service - not profit resulting from a drive for profit to the exclusion of a good service - a great description of business management from Anthony Thompson 

iii). As Dr Thomas Keidel explained in his spellbinding address:
In Germany there is the holy trinity in the centre of every town: - Church, Town Hall and Local Bank, all of which are respected and which are the mainstay of that town. The Local Bank makes a profit but above a certain level it provides a contribution to the community it lives and works in.
No local banker in Germany takes a bonus. If his bank were to go bust the German manager would never work in banking ever again.
Once you understand what a local bank is you would never stay with the London based Big 6 UK banks, I certainly would not - that is why we are changing the law and making this possible

"Part of the banking system should be local" - The Archbishop backs our local banks campaign

So said Justin Welby yesterday at a Bible Society event: he stated that problems were created when banks became distant from the communities they served.
The Anglican leader said the simplest solution to recreate a local banking system was "recapitalising at least one of our major banks and breaking it up into regional banks".
He cautioned against allowing the banking system to become too concentrated in the mistaken belief that it was safer. "As a bank, you can be big and simple or small and complicated, and do well. If you get big and complicated, you become unmanageable,"
I am delighted that the Archbishop agrees with our proposals for local banks.
Our conference to discuss how we do this is getting bigger and better and is on June 7th

Local Banks take a big step forward today

My dream is a Bank of Hexham or Northumberland working locally, lending locally and ploughing its profits back into the local community.

Sweeping bank reforms begin today with the abolishment of the Financial Services Authority (FSA), which has been replaced with
- the Prudential Regulation Authority (PRA) which will ensure the stability of financial services firms and be part of the Bank of England.
- The Financial Conduct Authority (FCA) is now the City's behavioural watchdog.
The Bank of England has also gained direct supervision for the whole of the banking system

I welcome these changes which should help see an end to boom and bust banking, will help stop disasters like Arch Cru and Equitable Life, and stop the bully banks imposing unfair interest rate agreements on businesses. I have spent 3 years trying to help Arch Cru, Equitable Life and IRSA victims ever since I became MP and I would not want this to happen to anyone else in the future. It has been by far the toughest part of this job that I do.
The regulator changes see the Bank of England - which gains a new governor, Mark Carney, in July - gain much more control over the functioning of the financial system and are the biggest changes to the central bank since it was given its independence in 1997.

The PRA is headed by the central bank's deputy governor Andrew Bailey, and will regulate around 1,700 financial firms. The FCA is headed by Martin Wheatley, who worked at the FSA and was responsible for the review into the Libor rate-rigging scandal at banks.

The FSA was set up 1997 by Gordon Brown, the then-chancellor. But it was roundly criticised for failing to spot the lending boom and subsequent bust and for not curbing the risky trading of banks, which ended up seeing banks like Northern Rock, Royal Bank of Scotland and Lloyds all spectacularly collapse and be bailed out by the taxpayer following the global financial crisis in 2008.

The changes we have brought in over the last 3 years will make it easier
- for small banks to be set up
- with a local slant
- an ability to lend money locally
- and profits going back to that community

Sunday with Murray, Speeches and Silverstone

Writing speeches on House of Lords for Monday, Community Local Banks /RBS for Tuesday and fine tuning Air Ambulance speech for Wednesday's debate before an afternoon of Murray and Silverstone. Genuinely believe Murray can consign the greatest tennis player of all time into second place today. The man who wins at Silverstone will be the one with the best waterproofs...