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Dáil Éireann debate -
Wednesday, 27 Jun 2001

Vol. 539 No. 2

Written Answers. - Financial Services Regulation.

Liz McManus

Question:

30 Ms McManus asked the Minister for Finance the position regarding discussions between his Department and the Irish Bankers Federation regarding a code of conduct on branch restructuring; and if he will make a statement on the matter. [19049/01]

I have no statutory function in regard to decisions relating to the location or size of bank branch networks. Such matters are the prerogative of credit institutions themselves, who must be free to make decisions on the maintenance, closure or opening of branches on the basis of their own commercial criteria.

Notwithstanding, I appreciate the concerns that arise at local level when branch closures are proposed. Any restructuring of branch networks should be done in a sensible and intelligent manner and should be done in partnership with customers.

I signalled my concerns regarding branch closures to the IBF at a meeting I had with the federation last November. Officials of my Department raised the matter subsequently with the IBF at a meeting on 21 February. Since then the IBF wrote to me to say that it is looking into the issue of developing a code of practice to cover bank and customer communication around the issue of branch restructuring. I welcome the intention of the IBF to develop a code of practice on this important subject and my officials remain at the disposal of the IBF in this regard, if required.

I am scheduled to meet with the IBF on 5 July next. I will take that opportunity to raise once again my concerns on the closure of bank branches and to impress upon the federation the importance of early agreement of a code of conduct.

It is my intention that the Irish Financial Services Regulatory Authority will have a strong focus on consumer issues and, in that context, I believe it would be appropriate for the new authority to monitor and report on access to banking services. In that way, the public generally and the Members of this House could have an authoritative source of information on the issues arising from the changes currently under way in the man ner in which banks provide people with access to their services.
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