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Wales launches the UK’s first development bank next month but calls have been made to take this a step further - with Welsh banknotes and a public bank.

The Development Bank of Wales will support businesses in the nation and debate has started on whether this should just be the starting point of a devolved banking system in the country.

Plaid Cymru wants a “genuine” public bank for Wales that can continue to provide a bricks and mortar presence in communities across the nation that are being hit by closures by traditional banking giants.

There are also calls for Wales to be able to follow the example of Scotland and Northern Ireland and receive the right for a bank to issue Welsh banknotes - featuring famous Welsh names.

The Daily Post has even mocked up a few suggestions.

These range from the serious, like former PM Lloyd George - to the less serious - such as ex-Wales footballer Mickey Thomas, who has a history with banknotes!

On the banknotes, Plaid Cymru’s Treasury spokesperson Jonathan Edwards said: “The ‘Bank of Wales’ brand is owned by Lloyds Banking Group, which is part-owned by the public.

“That brand should be given back to the people of Wales and the bank should be given the right to issue Welsh banknotes in the same way as is permitted for the three clearing banks in Scotland and the four in northern Ireland.

“To do so would be a welcome boost to ‘Brand Wales’ and recognise our country as an equal and as an economic entity.

“The Royal Mint already produces Welsh-specific coins, so for a Welsh bank to issue Welsh banknotes should raise no major issue of principle.”

A report by the Public Policy Institute for Wales said there are problems in the Welsh banking sector and wider economy that a public development bank could help to alleviate.

But it added that to create an effective and sustainable banking model would be a significant undertaking.

Talking about the wider banking sector, MP Mr Edwards added: “Plaid Cymru recognises the value and importance of individuals and businesses having access to comprehensive banking services close to their communities.

“We were delighted that our efforts in the National Assembly for Wales led to the Welsh Government seeking a report from the Public Policy Institute for Wales on this very issue. That report this week described evidence that bank closures are indeed having a negative impact.

“Rural communities are particularly hit by this private sector centralisation which is nothing more than big banks abandoning their loyal customers with measures to simply cut costs.

"A growth in online banking means very little to consumers which continue to be left in the broadband slow lane.

“Small and medium sized businesses need finance to be able to grow their businesses – to expand and create employment but the big corporate banks, who have little understanding of local need and local markets, are too often refusing to lend.

“In Parliament, Plaid Cymru has already requested the UK Government introduces a ‘last bank in town’ status as part of the British Banking Association legislation. This would ensure at least one branch remains in our small towns.

“It’s now time for the Welsh Government to drive forward plans to develop a genuine public bank for Wales which is rooted in our communities.”

Lloyds Banking Group has been asked for comment.