Manchester’s combined authority prepares to switch banks

THE Greater Manchester Combined Authority is to tender for banking services following the withdrawal of the Co-op Bank from local authority lending.

GMCA, a statutory body which co-ordinates key economic development, regeneration and transport matters for Greater Manchester’s 10 authorities, will either wait for its existing contract to end or switch before then.

In an agenda document for a meeting at the end of January it said: “With the Co-op Bank deciding not to renew existing banking contracts as they end within the next five years, as that marks the end of the current contract, the Authority will have the opportunity to tender for its banking services.

“There may be an opportunity to tender before that point, and there will be a collaborated (sic) approach across GM authorities, including the Authority. Members will be kept informed of any developments.”

In May the Co-op announced it had stopped offering loans to new business customers as it sought to shore up its finances. The decision came after the bank reported an annual pre-tax loss of £673m and it was hit by a ratings downgrade to junk status by the Moody’s agency.

The GMCA document also notes that its officers have been monitoring the Co-op’s activites, “in order to assess the
risk to the Authority of the current banking relationship”.

It added: “During the last 12 months the bank has shown no signs of being unable to provide the functions required by the Authority.”