Dáil Éireann Debate, Wednesday - 29 June 2022
29. Deputy Michael Lowry asked the Minister for Finance if he will review issues raised by a person (details supplied) in County Tipperary in relation to the proposed withdrawal of banks from the Irish market; and if he will make a statement on the matter. [34812/22]
View answerThe withdrawal of KBC from the Irish market is disappointing but as the Deputy is aware, such 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 is that the withdrawal takes place in an orderly manner. This is emphasised in all engagements with KBC, who meet with officials from my Department on a monthly basis.
On 25 June 2021, the Central Bank, as the relevant competent authority, issued a Dear CEO letter to the main retail banks setting out its consumer protection expectations in a changing retail banking landscape. These expectations include that all customers are protected and fairly treated throughout this period of change and that regulated entities proactively (as part of decision-making) assess the risks a decision may pose to new and existing customers, and develop comprehensive action plans to mitigate these risks.
The Central Bank continues to engage with KBCI to ensure that its expectations are met and that the withdrawing bank adheres to regulatory requirements, including the consumer protections set out in statutory Codes and Regulations.
The FAQ on the KBC website provides information to consumers in relation to KBC’s plans for its withdrawal. (See link - www.kbc.ie/important-update-from-kbc-bank-ireland). While decisions related to the strategic direction of regulated firms are for the boards of those firms, the Central Bank has advised me that it has made it clear to the management of KBC Bank Ireland that it expects a customer-focused approach to be taken in all aspects of business.
The Central Bank has also advised that while it cannot comment on the operations of specific regulated entities, however, in scenarios such as the one outlined it would expect a regulated entity, at a minimum, to have a sound legal basis on which to redeem customer investments, and to provide clear and timely notice to affected customers.
If a consumer is dissatisfied with the services provided by KBC they can submit a complaint via the bank's formal internal complaint process. If their complaint is not resolved to their satisfaction through this process, they can then seek recourse via the Financial Services and Pensions Ombudsman (FSPO). The FSPO will take on complaints once the bank's internal complaints process has been exhausted.
Contact details for the FSPO are as follows:
- Address: The Financial Services and Pensions Ombudsman, Lincoln House, Lincoln Place, Dublin 2, D02 VH29.
- Tel: 01-567 7000
- Email: info@fspo.ie
Website: www.fspo.ie/
