Pontypool council hold co-op debate
6:01pm Monday 2nd September 2013 in Gwent news
PONTYPOOL Community Council’s policy and finance committee will discuss if they are to continue using the Co-operative Bank for its investment business.
At the meeting on September 4, committee members will consider a report that outlines that for many years, they have used the bank for its day to day transactions.
But, the authority also has to investment accounts holding funds which are not planned for use in the immediate future.
On July 31, the total amount of these three accounts was £396,687.
Concerns were raised following the announcement of a £1.5bn capital shortfall, which resulted in the Co-operative Bank having its credit-rating downgraded to junk status.
The report outlines that there is no reason to believe that the Co-operative Bank is at any greater risk than any other of the high street banks.
As with other banks, eligible deposits are protects up to a total of £85,000, but above this amount is not covered.
The report suggests that committee members consider a three year forward financial budget to identify its expected cash flow, so it can commit surplus funds to long-term investment.
Councillors are advised to assess the interest rates being offered by financial institutions and invest the authority's surplus fund between the top three most competitive firms.
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