Surplus of new five pound notes

BBA responds to Bank of England on distribution of new five pound notes.

Mrs Angela Knight CBE, Chief Executive of the British Bankers’ Association, said: "We were surprised to hear the Governor's comments in his Mansion House speech about the Bank of England's surplus of £5 notes. We are keen to work with him to remedy this issue.

"The UK retail banks are the distributors of banknotes through their branch networks, through cashpoints and through shops. The £5 notes are largely distributed through the shops and the banks are happy to supply them as they are required.

"At cashpoints, bank customers routinely withdraw £100 at a time. It stands to reason therefore that a cashpoint dispensing £5 notes will run out twice as quickly as one dispensing £10 notes. This would obviously cause supply problems particularly at weekends. It would also mean twice as many visits to cashpoints by secure couriers, creating an additional security risk.

"This morning we have launched a poll on our website asking the public how they use cashpoints and what they value about the service. Visit www.bba.org.uk and make your voice heard."