East Dunbartonshire Council to close Municipal Bank

East Dunbartonshire Council said the Municipal Bank would cease trading next year

A council-run bank with thousands of customers is to close next year.

East Dunbartonshire Council said the Municipal Bank - known locally as The Friendly Bank - would cease to trade on 13 February 2015.

It said the bank only offered a savings and withdrawal service which was "very limited" compared to those offered by traditional high street institutions.

The bank currently operates from council offices at Bearsden, Lennoxtown and Kirkintilloch.

Council Leader Rhondda Geekie said the decision to close the bank was part of a wider review to ensure that council services were run "as efficient and effective as possible".

Local 'concerns'

She said: "The Municipal Bank provides only a savings and withdrawal function, which in today's market represents a very limited service.

"However, it has had a long-term presence locally and the council understands concerns about its closure.

"The majority of account holders will not be materially affected by the changes as they might already have other banking arrangements in place or have easy geographical access to other financial services providers."

Ms Geekie added: "The closure details and timescales are now being communicated to all Municipal Bank customers and we are working closely with partners and alternative service providers to support customers with alternative arrangements."