Lothians Labour MSP Kezia Dugdale has urged other banks to adopt the ethical policies used by the Co-operative, which is taking over 632 branches from Lloyds Banking Group.
In a motion tabled in the Scottish Parliament, she welcomed the deal, which will give the Co-op around seven per cent of the personal current account market and ten per cent of bank branches in the UK, 189 of them in Scotland.
She said the move marked a “significant step toward greater and much-needed competition in the banking sector”.
Ms Dugdale argued the Co-op had grown stronger because of the financial crisis while other banks were mired by crisis and scandal. She voiced the hope that its increased presence would encourage competitors to copy its ethical and sustainable stance.