Dáil Éireann Debate, Thursday - 8 September 2022
334. Deputy Colm Burke asked the Minister for Finance the details of the action that his Department will take to encourage the opening of new bank branches in towns that have one or no bank branch given that it weakens the commercial infrastructure of communities; and if he will make a statement on the matter. [42269/22]
Amharc ar fhreagraIn 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, including the vulnerable.
The Central Bank's Consumer Protection Code 2012 (the Code) states that a bank must not, through its policies, procedures, or working practice, prevent access to basic financial services. The Central Bank adopts a ‘technology neutral’ approach meaning that the same principles of regulation, including the rules of the Code, apply equally to both digital and traditional delivery environments.
In light of the changing landscape for banking in Ireland, in 2021 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.
The public consultation process, which concluded on 8 July, contained a number of questions relating to branch services. One of these questions asked whether the actions taken by the banks to mitigate the impact of branch closures on delivery of services to consumers and SMEs has been satisfactory and sought input on how to address the issue. The review team are currently reviewing the 90-plus submissions received.
Officials are due to present their draft report to me in November.
