Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

We are seeing a larger amount of account closure and shifting in the aftermath of the decision by KBC Bank Ireland and the imminent exit of Ulster Bank. There are many encouraging signs now regarding the right level of switching activity taking place. In Bank of Ireland, AIB and Ulster Bank, in the first eight months of this year, we have now seen more than 600,000 new accounts being opened. All that being said, however, there is no reason to derive early satisfaction regarding this huge consumer project being complete. We have a long way to go in that regard, and there are many different consumer issues we need to monitor.

What are we going to do about it through our regulator and what are the banks doing in that regard? There are a number of different things on the way. First, as the committee will be aware, the Central Bank of Ireland is engaging regularly with the five banks involved in this and is publishing information about what is happening with bank changes and account changes. Second, a really big advertising campaign is under way. I, for one, cannot turn on the radio now without hearing this. It is much needed and it is clear. Third, Banking and Payments Federation Ireland, BPFI, is now engaging directly with utility providers with regard to making this as clean, clear and simple as possible. At the same time, the regulator is engaged with the three remaining banks to ensure the right levels of staff and resources are in place to be able to open up the new accounts that will be needed for those who currently bank with KBC Bank Ireland and Ulster Bank.

There are, therefore, some signs of progress. It is far too early to be able to say that we are there on it yet. In particular, the exit of Ulster Bank and what that means for its existing consumers and customers is one of the biggest things ever to happen in Irish banking from the point of view of the consumer. My Department now is regularly involved in meetings with the Central Bank of Ireland, BPFI and all of the banks to monitor this situation.