Dáil Éireann Debate, Thursday - 8 September 2022
332. Deputy Colm Burke asked the Minister for Finance the details of his Department's plans to support pubs across Ireland as bank branches close, considering that a significant portion of sales continue to be carried out through cash, which makes pubs a target for crime, and increased transport costs; and if he will make a statement on the matter. [42267/22]
Amharc ar fhreagra333. Deputy Colm Burke asked the Minister for Finance his Department's plans to support businesses that continue to depend on cash customers and the owners of which must travel long distances to deposit cash, given the considerable increases in transport costs; and if he will make a statement on the matter. [42268/22]
Amharc ar fhreagraI propose to take Questions Nos. 332 and 333 together.
In the last year, there have been a number of announcements from the main retail banks in relation to their operations in the State and their branch networks around the country. While decisions relating to the business model of regulated firms are a commercial matter for the boards of those firms, the Central Bank and I expect them to take a consumer-focused approach in respect of any decision that affects their customers.
Banks have a key role in maintaining the flow of cash through the economy and ensuring appropriate access to retail banking services for all in society.
On 23 November 2022, I published the Terms of Reference for a broad-ranging review of the retail banking sector in Ireland. The Review is being conducted by officials in my Department with assistance from other Government agencies and Departments. As part of the Review, stakeholders, including members of the public, were invited to make submissions to the Department on issues that fall within the Terms of Reference.
The public consultation process, which concluded on 8 July 2022, contained a number of questions relating to access to cash. One of these questions noted the concerns which are being raised around access to cash and asked for submissions on what should be done to protect access to cash. The review team are currently reviewing the 90-plus submissions received.
Another important component of the Review is the consumer-focused survey which was completed by Behaviour and Attitudes on behalf of the Department. The purpose of this survey was to ascertain consumers’ experience and perceptions of the banking sector in Ireland. The survey results highlighted that cash is still a widely used payment method, with 20 per cent of respondents saying that it is their preferred payment method.
Officials are due to present their draft report to me in November.
In addition banks are required to notify the Central Bank when they intend to close, merge, or move a branch. The Central Bank’s focus regarding branch closures is to ensure that banks adhere to the relevant requirements in the Consumer Protection Code 2012 (the Code) and how banks communicate the closures to their customers.
Banks must ensure that they communicate in a clear and timely way with customers regarding any such changes, including the closure of branches, and in particular inform them about any alternative channels available to them to avail of banking services. Banks must also provide affected vulnerable customers with the assistance necessary to ensure that those customers can retain full access to basic financial services, albeit in many cases at another branch location.
The Code sets out important requirements to ensure that consumers are fully informed of any closures or changes in services, and have time to make alternative arrangements.
When notification is received in accordance with Provision 3.12, the Central Bank engages with the banks to ensure the impact of the decision has been carefully considered across its full customer base and at the appropriate levels. The bank must ensure that its communications to customers are clear and transparent and that it seeks to assist vulnerable customers to mitigate the effect of the branch closure as much as possible.
