Micheál Martin (Cork South Central, Fianna Fail) | Oireachtas source

The existing banks should step up to the plate and should do everything they possibly can to assist the customers of the exiting banks, KBC and Ulster Bank, in respect of their needs and to facilitate switching. I am unclear as to what the Deputy thinks the Government should do. He has not really specified that. He spoke about a laissez-faireapproach. I am not clear on what he is saying the Government should do specifically. What should the Department of Finance do? We have a structure and the Deputy knows this. The Central Bank is the key structure. It is separate. There is a separation between the Government and the Central Bank in terms of the management of the commercial banks.

It is regrettable that Ulster Bank and KBC are leaving the Irish market. It is not something the Government wanted to see happening but we know the reasons and rationale for it. The Government does not have a role in the commercial decisions of banks and of those banks in particular. Yes, every effort has to be made that the banks would withdraw in an orderly manner. The Minister, Deputy Donohoe, and his officials are engaging with the banks that have indicated their intentions to leave the market to emphasise the importance of an orderly withdrawal and the need to engage in a timely manner with their customers in advance of any exit. The Minister and the officials are doing this. They are also engaging with the Banking and Payments Federation Ireland to ensure the remaining banks are prepared to accept applications from customers who are switching from closing banks. The Department will also be monitoring closely the number of accounts that close and switch in the coming months. It will continue to engage with all stakeholders to ensure the impact on consumers is minimised. I understand the Central Bank's supervision of any bank that withdraws from the market will be focused on ensuring its customers are treated fairly and it remains in place to support customers when switching current accounts to ensure it is easy and straightforward.

All banks, payment institutions and e-money institutions that offer payment accounts in Ireland must comply with the switching code. As per the code, all banks must provide a switching pack to their customers. Provision 10 of the code requires that the switch is completed within ten days of the switching date. In terms of supports for vulnerable customers, the Central Bank's consumer protection framework is designed to ensure that customers' best interests are protected. It requires banks to consider specifically the impact of their decisions on vulnerable customers and provide the assistance necessary to reasonably mitigate those impacts and retain access to basic financial services. There is an obligation on the exiting banks and the existing banks to do everything they possibly can to facilitate their customers. The Department of Finance is engaging with them on this and will continue to do so. The Central Bank has to engage on this also.

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