Dáil Éireann Debate, Tuesday - 11 May 2021
226. Deputy Éamon Ó Cuív asked the Minister for Finance the discussions that have taken place between him or his officials with a bank (details supplied) in relation to its planned exit from operations here; the timescale for same; if the bank has outlined its plans in relation to human resource issues or the disposal of the loan book to his Department; and if he will make a statement on the matter. [23770/21]
View answerLast month, KBC confirmed that it has entered into a Memorandum of Understanding with Bank of Ireland, which could potentially lead to a transaction where Bank of Ireland acquires a substantial amount of KBC Bank Ireland’s performing loan assets and liabilities. KBC has stated that it is also reviewing its options to divest KBC Bank Ireland’s remaining non-performing mortgage loan portfolio. The execution of these two transactions would ultimately result in KBC Group’s withdrawal from the Irish market.
The Government regrets the decision made by KBC however neither the Government nor I have any role in decisions such as these, which are a matter for the relevant banks and their independent boards. The decision will have a significant impact on staff, customers and, potentially, the level of competition in retail financial services. The news that discussions have commenced with Bank of Ireland regarding it potentially acquiring substantially all of KBC’s performing loan assets and liabilities is welcome and the Government hopes negotiations are concluded quickly and prioritise the continuation of financial services for customers and the preservation of jobs. It is critical that both KBC engages with and keeps all its stakeholders, especially its staff and customers, fully informed in a timely manner as decisions are made.
Last week officials from my Department met with representatives from KBC as part of the normal engagements with the banking sector. In light of the recent announcement, KBC confirmed that work on negotiations are underway, as provided for in the Memorandum of Understanding. However, the KBC representatives outlined that they were not in a position to provide a likely timescale or discuss details of the negotiations until an agreement is reached in due course. KBC emphasised that it has had continuous engagement with staff in relation to the announcement.
