Brendan Smith
Question:49. Deputy Brendan Smith asked the Minister for Finance his views on the need to extend the timeline for banks (details supplied) exiting this State; and if he will make a statement on the matter. [31296/22]
View answerThursday, 16 June 2022
Questions (49)
Written answers
While it is regrettable that Ulster Bank and KBC have decided to exit the market, as Minister for Finance, I do not have a role in the day to day operations of any bank operating within the State. Decisions in this regard are commercial matters and are the sole responsibility of the board and management of the banks, which must be run on an independent and commercial basis.
My priority now is that the withdrawals take place in an orderly manner and the importance of this is emphasised in all engagements with Ulster Bank and KBC. Both banks are meeting with officials and providing relevant information regarding account closures to the Department of Finance on a monthly basis. This will help to identify any emerging trends and potential issues for consumers.
Both banks have indicated that they will provide customers with six months' notice to close their accounts and that will be issuing letters to customers in tranches over the coming year.
Section 3.11 of the Central Bank's Consumer Protection Code requires that where a regulated entity intends to cease operating, merge with another, or to transfer all or part of its regulated activities to another regulated entity it 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 outstanding business is properly completed prior to the transfer, merger or cessation of operations or, alternatively in the case of a transfer or merger, inform the consumer of how continuity of service will be provided following the transfer or merger; and
d) in the case of a merger or transfer of regulated activities, inform the consumer that their details are being transferred to the other regulated entity, if that is the case.
As part of its supervisory programme on retail bank consolidation, the Central Bank met with the CEOs of the five main retail banks in Ireland on 17 May 2022 to discuss the large scale migration of customer bank accounts, and the actions necessary to ensure that this activity happens in line with customer needs and expectations. The Central Bank will meet again with the CEOs on 28 June 2022 for a further update on progress of the migration of customer accounts.
My officials and I will continue to monitor the migration of current accounts from the exiting banks and engage with relevant stakeholders, both public and private, as I have been doing over recent months. With the objective of ensuring that impacted customers face the least amount of disruption in migrating their accounts over the coming months.
Question No. 50 answered with Question No. 24.