asked the Minister for Finance the terms of any proclamation or authorisation issued since banking services were discontinued without notice, if the banks applied to his Department to close their doors to the public, if he will make a statement in connection with the decision of the banks to cease normal domestic business and if this action was taken with his consent.
Written Answers. - Banks Closure.
347.
The banks do not require my consent to close and no such consent was sought or given in connection with the recent closure of the Associated Banks. Similarly, no proclamation or other authorisation was issued in that connection.
I understand that the banks felt impelled to close in consequence of the very heavy volume of withdrawals in the wake of the decision by the Irish Bank Officials' Association to ban sterling transactions. Following the closure, the banks conveyed to the Central Bank their view that they could not reopen while the officials' action continued. The Central Bank after consideration of the implications for the national economy and the banking system accepted this view and advised my Department accordingly. As the Deputy is aware, the banks reopened for normal business promptly following the acceptance by the IBOA on 29 November of the settlement terms proposed at the Joint Industrial Council. I am pleased that the dispute was resolved speedily and that the inconvenience to the public of an extended closure was avoided.