Peadar Tóibín
Question:77. Deputy Peadar Tóibín asked the Minister for Finance if a public banking forum will be developed by the Government. [22908/21]
View answerTuesday, 15 June 2021
Questions (77, 119)
John McGuinness
Question:119. Deputy John McGuinness asked the Minister for Finance if he supports the establishment of a forum on banking; and if he will make a statement on the matter. [31702/21]
View answerWritten answers
I propose to take Questions Nos. 77 and 119 together.
This is a very difficult period for the retail financial services sector, which is undergoing a major period of change. In the last few months, we have seen several major announcements including the withdrawal of Ulster Bank, the potential withdrawal of KBC Bank Ireland, and the forthcoming closure of a large number of bank branches by Bank of Ireland and a smaller number by AIB.
I appreciate the concerns of bank staff arising from these announcements and for the future direction of the sector they work in.
While many ascribe these announcements wholly or partially to Covid and all the challenges that the pandemic has brought, the reality is that retail financial services is undergoing real change as the sector copes with long running challenges such as negative interest rates, technological change that is reducing the barriers to entry to a whole range of new entrants, and changing customer preferences as they use more and more digital services, while still wanting the traditional branch network to be available.
Accordingly, I am considering how next to structure a review process that will examine the issues in depth. This process is likely to involve engagement with a wide range of stakeholders in developing a fuller analysis of future banking challenges and recommendations that flow from that analysis. I want to ensure that the process is a holistic one as it is important that the future of banking is not determined by the incumbents.
I hope to be in a position to set out details on this in the coming months and all stakeholders will be afforded the appropriate opportunities to contribute their views and suggestions.