I propose to take Questions Nos. 81 to 83, inclusive, together.
As I stated previously in a reply to a question regarding this issue on 20 June the Government has no formal role in the commercial decisions of the banks as to their future business model and whether or not they will close particular branches. While I regret the closure of any bank branches, the Deputy will no doubt appreciate that the provision of services by banks, including the location of branches, is a commercial decision for the Board of Management of the banks.
As the Deputy will be aware, provision 3.12 of the Consumer Protection Code 2012 states:
"When intending to close, merge or move a branch, a credit institution must:
(a) notify the Central Bank immediately;
(b) provide at least two months notice to affected consumers to enable them to make alternative arrangements;
(c) ensure all business of the branch is properly completed prior to the closure, merger or move, or alternatively inform the consumer of how continuity of service will be provided; and
(d) notify the wider community of the closure, merger or move in the local press in advance."
I understand that when the Central Bank receives a notification under 3.12 of the Code it will engage with the regulated entity concerned to ensure that it fully meets its obligations under the Code including ensuring that the entity concerned has put in place measures to assist all customers particularly vulnerable customers.
Where issues of non-compliance are identified in respect of the above provision or any provision of the Code, I understand that the Central Bank considers supervisory action as appropriate.
I can also clarify that provision 3.12 of the Code relates solely to requirements to be complied with where a credit institution intends to close, merge or move a branch rather than when it is reducing services.
However, provision 3.10 of the Code provides that “Where a regulated entity intends to amend or alter the range of services it provides, it must give notice to affected consumers at least one month in advance of the amendment being introduced.”
General Principle 2.11 of the Code provides that a regulated entity must ensure that in all its dealings with customers and within the context of its authorisation it “without prejudice to the pursuit of its legitimate commercial aims, does not, through its policies, procedures, or working practices, prevent access to basic financial services.”
In its 2016 Consumer Protection Outlook, the Central Bank outlined its expectation that where a new method of delivering a service involves changes to existing service delivery, firms must fully assess the impact of these changes on affected consumers prior to implementing them. This assessment must include a consideration of the specific needs of more vulnerable consumers and those especially affected by the change. Firms must also ensure that all customers are fully informed in a timely way of the proposed changes and be assisted, as appropriate and reasonable, to adopt the changes or to switch providers.
Due to statutory confidentiality requirements, the Central Bank may not publicly disclose much of its supervisory engagement with individual firms and therefore I am not in a position to provide details of the engagements with notifying banks. That said, individual banks have made a number of public announcements regarding planned closures.
