Gerald Nash (Louth, Labour) | Oireachtas source

While I know we have limited time, I am pleased the Dáil has acceded to my request to hold a debate on general banking issues. Originally this debate was to discuss Ulster Bank, but, of course, things are very fast-moving in the financial services industry and we need to cover many issues this evening.

It has been a wretched ten days for banking and financial services in Ireland. Ulster Bank is going. I support moves to scope out the concept of a third banking force and the potential role that Permanent TSB may play in that. As we know Bank of Ireland has taken the knife to 88 branches across the country. Yesterday, as we know, the Central Bank slapped a €4.13 million fine on Davy as a result of the behaviour of 16 of its staff, involving egregious breaches of conduct. In other countries, the law views this kind of behaviour as corruption. In Ireland it is merely a regulatory breach.

On the day the fine was issued for the costliest nixer in Irish history, the State in the guise of AIB bought a stockbroking firm for €138 million, having sold it for just over €20 million in 2014. It will not be lost on the public that the same bank that was given the green light to buy a stockbroking firm yesterday with added bonuses for good measure also announced the closure of five of its own branches. This frenzy of bank branch closures shows that relationship banking in this country is dying for the less well-off ordinary citizen, but for high-net-worth individuals the red carpet is being rolled out by AIB and its stockbroking partners now in the guise of Goodbody.

A Labour Party councillor in Donegal, Martin Farren, called me earlier this week and he is campaigning to save the Moville branch of Bank of Ireland. As the Minister will know, Moville is a lovely tourist town. Councillor Farren tells me this is the last bank branch in Moville and in the entire Republic of Ireland side of the Foyle. The nearest bank branch is more than 10 miles away. He has told me the bank will not be operating an ATM on the site. It has said that where it is closing branches, it will continue to operate ATMs, but this is not the case in Moville.

Does the Minister agree with Councillor Farren and me that there should be a pause on all bank branch closures? In his earlier contribution, the Minister stated he does not have a function to allow him to do that. However, let me ask him this question. Should the Central Bank code of practice be changed and brought in line with UK regulatory provisions, for example, to allow for impact assessments and 12-month consultation periods where bank branch closures are being considered?

Regarding Davy, companies do not make decisions; people do. Individuals need to be held accountable for actions which resulted in the imposition of the €4.13 million fine yesterday. I know Davy issued a statement earlier this evening, but based on that statement it seems it is prepared to brazen this out. It is circling the wagons. The section of law used by the Central Bank to investigate this transaction allows for fines to be imposed on individual wrongdoers. Should this be the next step for the Central Bank? As far as the Minister is aware, is any material related to potential fraud, deception or loss being caused being forwarded by the Central Bank to An Garda Síochána? To the best of the Minister's knowledge, is the Central Bank engaged in any similar investigations in other stockbroking or wealth management firms operating in this country?

Time and again I have mentioned the need for a senior executive accountability regime. It is long overdue to encourage and promote better behaviour. In his earlier contribution, the Minister articulated that he plans to introduce the heads of a Bill very shortly. How soon will that be? We have been waiting for a long time.

Regarding the concept of a forum on banking, I hope the Minister will agree with me and with the Financial Services Union that the future of banking in this country and the design of policy should not merely be left up to politicians and senior bankers. We need to consider fully and holistically the function of banking in our society. I back calls for a forum on banking so that we can have that comprehensive understanding and review of the role that banking should be playing in this country, how that should be designed, and how that can be done ethically and in the way that serves the best interests of our economy and society.

Would that be a concept the Minister would be prepared to consider further?

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