Dáil debates

Wednesday, 3 March 2021

8:05 pm

Photo of Jim O'CallaghanJim O'Callaghan (Dublin Bay South, Fianna Fail) | Oireachtas source

I will go first. The departure of Ulster Bank from the banking sector is a major development of significant proportions. It is, unfortunately, a negative development not only for the banking system, but also for the economy. We know that Ulster Bank has been in this country for more than 160 years and during that time, it has provided a service to a large number of people. Its decision to depart means, unfortunately, that the banking system is very uncompetitive at present and, to a large extent, the main players in the banking market are entities in which the State has significant shareholdings. The State has significant shareholdings in AIB and Permanent TSB and a smaller shareholding in Bank of Ireland. The public are entitled to ask what benefit we are getting from having large shareholdings in these banking institutions. I do not see us as getting benefits out of the large banking institutions if we cannot in some way influence their direction.

I am aware that there is an issue about the closure of branches. It is a significant disadvantage for people who live in communities to be told that their local branch is going to close. We need to recognise that the banks' plans for the future probably do not include many branches on high streets in our country. We need to play a part in trying to formulate a vision for the future of banking in Ireland. If we do not try to get involved, a situation will develop whereby banks are going to simply pull out of different branches and hope that all forms of banking will be developed online.

We need to recognise that, years ago, bank managers played a very important part in the community and the reason there was importance placed on them was because of the autonomy and authority that was given to them in respect of the decision they could make at a local level. What has happened now in banking is that all the major decisions are being made centrally, in Dublin or other large cities, such as Cork and Limerick. We need to try to redevelop banking so that the individuals who are the bank managers in local communities and know the communities can make decisions.

The Minister needs to consider a forum on banking because if we just allow it to develop the way the banks want it to, they are inevitably going to push down their costs to increase their profits. The banking network that we see operating in Ireland at present will not look anything like this in years to come. Banks will be gone from the main street and, ultimately, people will be forced to do impersonal banking online. That is not for the benefit of the country and it will not be for the benefit of people who are engaged in banking or for the benefit of our economy.

Comments

No comments

Log in or join to post a public comment.