Pearse Doherty (Donegal South West, Sinn Fein)
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Question 194: To ask the Minister for Finance if he will detail the changes made by AIB to the eligibility criteria for fee free banking; if his attention was drawn to the change before it was made and if so if he gave a view on the matter; if the Financial Regulator was aware of this change before it was made and if so did he give a view on the matter; if any impact analysis on consumers was carried out by the bank, the regulator or his Department before the decision was taken; the number of customers who will lose out as a result of this change and the estimated additional revenue that will be brought in to the bank as a result of changing these criteria; and if he will make a statement on the matter. [27820/12]

Michael Noonan (Limerick City, Fine Gael)
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The Deputy will be aware that the Bank's policy in relation to fees is a matter for the management and board of the institution. I have no role in the day-to-day commercial and operational decisions of the banks, which include these matters. These decisions are taken by the board and management of the institution. Notwithstanding the fact that the State is a significant shareholder in the institution, I must ensure that the bank is run on a commercial, cost effective and independent basis to ensure the value of the bank as an asset to the State, as per the Memorandum on Economic and Financial Policies agreed with the EU Commission, the ECB and the IMF. However, AIB have informed me that with effect from 28th May 2012, AIB Personal current account customers who maintain a minimum daily credit statement balance of EUR2,500 in the account for each fee quarter can qualify for maintenance and transaction free banking.

AIB also continues to provide a significant proportion of personal customers with the opportunity to avoid maintenance and transaction fees, through the new qualifying criteria in addition to the free banking offerings for student and graduate account holders and AIB Advantage customers (over the age of 60). Following the change circa 40% of AIB's personal current account customers will qualify for banking free of maintenance and transaction charges under the revised criteria and the propositions for student accounts, graduate accounts and AIB Advantage customers (over 60s).

The estimated additional revenue is commercially sensitive. Details of the proposed changes were notified in advance to the Central Bank of Ireland and to the Department of Finance. Undertaking impact analysis is difficult as customers vary in terms of the level of usage of their current account. Customers using online and electronic services pay less than those using manual/paper services, for example cheques.