Dáil Éireann Debate, Thursday - 8 September 2022
318. Deputy Pearse Doherty asked the Minister for Finance the communications that he or his Department had with a bank (details supplied) prior to its announcement of plans to remove cash, cheque and ATM facilities from 70 of its branches; and if he will make a statement on the matter. [42000/22]
Amharc ar fhreagra319. Deputy Pa Daly asked the Minister for Finance if he was informed of the intention of a bank (details supplied) to remove all cash services from a number of its branches prior to the announcement; and if he will make a statement on the matter. [42006/22]
Amharc ar fhreagra320. Deputy Michael Healy-Rae asked the Minister for Finance when he was informed of the decision by a bank (details supplied) to remove cash services from 70 branches throughout the country; and if he will make a statement on the matter. [42042/22]
Amharc ar fhreagraI propose to take Questions Nos. 318 to 320, inclusive, together.
I wish to highlight, as Minister for Finance, I am precluded from intervening in commercial and operational decisions in any particular bank, even one in which the State has a shareholding. Decisions in this regard, including AIB's original announcement on 19 July 2022 to re-purpose 70 of its branches across the country, are the sole responsibility of the board and management of the banks, which must be run on an independent and commercial basis. The bank's independence is protected by a Relationship Framework which is a legally binding document that cannot be changed unilaterally. This framework, which is publicly available, was insisted upon by the European Commission to protect competition in the Irish market.
Papers circulated in advance of the June AIB Board Meeting included a proposal on a reconfiguration of some AIB branches but with no firm announcement date. Department officials do not attend board meetings for any of the banks in which the state has a shareholding.
A Department of Finance official met with AIB officials on 15 July 2022 where he was advised that an announcement of branch reconfiguration would be made on 19 July 2022. It was noted that this was a commercial decision for the board and management of the bank, that no branches were being closed and that an enhanced arrangement was in place with An Post to provide cash services via the post office network. The Department’s executive board was briefed on the next business day, 18 July 2022, and I was informed the day after that.
On 22 July 2022, recognising the customer and public unease that this decision by AIB caused, the bank acted swiftly and decisively in deciding not to proceed with the proposed changes to its bank services. AIB continues to retain its 170-strong branch network in its entirety and will also continue to offer banking services through its relationship with at An Post at its 920 post offices nationwide.
