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European bank branches curtail operations to limit virus spread

Published 16/03/2020, 15:58
European bank branches curtail operations to limit virus spread

By Hans Seidenstuecker and Sinead Cruise

FRANKFURT/LONDON (Reuters) - Two of Germany's largest banks have temporarily closed hundreds of branches while in Italy lenders are shortening opening hours as they grapple with staff shortages and try to limit the spread of coronavirus.

Commerzbank (DE:CBKG) will close several hundred of its roughly 1,000 branches in Germany, a spokesman said, adding that the exact number was still to be determined, while HVB plans to close 101 of its 337 branches during the course of Monday.

Customers will still be able to use ATMs, online services and those branches that remain open. Several of Germany's savings banks have already closed or are planning to close branches as well.

In Italy, the country's biggest retail bank Intesa San Paulo (MI:ISP) said its large branches - amounting to around 900 from a total of 3,500 - are opening only in the morning while most of its smaller sites are operating three mornings a week. Around 122 small branches, which are located nearer large ones, have closed.

UniCredit, which has around 4,000 branches, said last week it would keep only a limited number open in each region.

Other Italian banks are following suit, with Banca Monte dei Paschi (MI:BMPS) also opening only in the morning.

Lenders are hoping the increased use of digital banking will limit the disruption caused by the restricted branch services.

In Britain, Spain and France, most banks remain fully open although some have issued statements encouraging customers to use online services where possible.

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"Despite complex operational conditions, all employees in the networks are and will remain fully mobilised to help their clients to get through this exceptional crisis ...banking networks will be open and branches are prepared," France's banking federation said in a statement on Sunday.

Lloyds (L:LLOY), Britain's biggest domestic lender, said it was waiving fees on missed payments on credit cards, loans and mortgages, giving repayment holidays, allowing emergency access to fixed term savings accounts and raising online banking deposit limits to help people unable to access their local branches.

"We are making some temporary changes over the coming weeks, and will be providing individual support to customers who need extra help," Group Director Vim Maru said

Barclays (L:BARC) also said it was encouraging customers to speak to specialist teams set up to help those facing financial difficulty, and that it would also accept applications for temporary increases in credit card limits during the disruption.

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