I have no function in regard to the commercial activities of banks, including the location or size of branch networks. I am aware of and appreciate the concerns that can and have arisen at local level as a result of recent and proposed branch closures.
The "Banking Sector: Some Strategic Issues facing the Irish Banking Sector", published by my Department in August 2000 reviewed this issue and made the following recommendation:
The banking industry needs to develop a strategy (whether involving agency arrangements with other non-bank retail outlets, electronic arrangements or otherwise) to address the issue of maintaining appropriate mechanisms for and levels of access (in all regions and by the different social groups) to banking services in the context of possible future developments such as Internet banking, closure of branches and rationalisation in the branch banking system. The regulatory authority for the financial services sector should monitor and report on this from a customer perspective.
As the Deputy is aware, since the report of the group, the Government has decided to establish a single regulatory authority, to be called the Irish Financial Services Regulatory Authority, within the structure of the Central Bank of Ireland and Financial Services Authority. Given the special consumer focus of the new structure, it would be appropriate for the new IFSRA to monitor and report on this issue.
It was in this context that my Department suggested to the Irish Bankers' Federation that it, as the umbrella organisation for the banking sector, should evaluate industry practice and consider publishing a code of practice. I understand the federation is considering this suggestion.