Dáil Éireann Debate, Thursday - 10 March 2022
190. Deputy Sean Sherlock asked the Minister for Finance the number of accounts that will be closed by banks exiting the Irish market in 2022; the breakdown by age and gender of those account holders; and his views on whether the banking sector will take on those accounts. [13710/22]
Amharc ar fhreagraAs Minister for Finance, I have no role in the operational matters of any bank in the State which includes banks in which the State has a shareholding. The commercial decisions and information in this regard are the sole responsibility of the board and management of the banks, which must be run on an independent and commercial basis.
However, my officials and I are engaging with the banks that have indicated their intentions to leave the market, to emphasise the importance of an orderly withdrawal and the need to engage in a timely manner with their customers in advance of any exit.
Provision 3.11 of the Consumer Protection Code 2012 requires that a regulated entity that intends to cease operating, merge with another, or to transfer all or part of its regulated activities to another regulated entity must:
- provide affected consumers with at least two months’ notice to enable them to make alternative arrangements if they so wish;
- ensure all outstanding business is properly completed prior to any transfer, merger or cessation of operations; or, in the case of a transfer or merger, inform customers as to how continuity of service will be provided following a transfer or merger; and
- in the case of a merger or transfer of regulated activities, inform customers that their details are being transferred to the other regulated entity, if that is the case.
The Central Bank’s supervision of any bank that withdraws from the market will be focused on ensuring that its customers are treated fairly, and remains in compliance with the letter and spirit of regulatory requirements. The Central Bank has clearly communicated the requirement for a customer-focused approach to be taken in all aspects of their business throughout the period of change and that they ensure that customers understand what these developments means for them.
On 25 June 2021, the Central Bank issued an industry letter regarding its consumer protection expectations in the changing retail banking landscape. This will inform regulated entities’ actions and decisions to ensure that customers’ interests are protected and potential risks are mitigated.
