Written answers

Wednesday, 15 January 2014

Department of Finance

Banking Sector Issues

Photo of Clare DalyClare Daly (Dublin North, Socialist Party)
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109. To ask the Minister for Finance if Danske Bank, when it announced it was withdrawing from Ireland in October, submitted plans to the Central Bank of Ireland for an orderly withdrawal from the market; the reason these are not being communicated to clients either by Danske or the Central Bank. [55298/13]

Photo of Clare DalyClare Daly (Dublin North, Socialist Party)
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110. To ask the Minister for Finance the actions the Central Bank of Ireland has taken to facilitate an orderly withdrawal of Danske Bank from the Irish market; if it has considered organising a mass switch on existing terms and conditions to one of the pillar banks, into whom the taxpayer has already injected so much money. [55299/13]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 109 and 110 together.

The Central Bank has informed me that prior to Danske Bank Ireland’s public announcement, the bank informed the Central Bank of its commercial decision to withdraw existing day to day personal customer products and services on a phased basis during the first half of 2014, and also to discontinue the provision of personal and business banking products to new customers. Danske Bank has advised it will continue to operate in Ireland but will re-focus its business towards its Corporate and Institutional clients.

Danske Bank remains authorised by the Danish FSA and customers continue to receive the protections of Irish financial services legislation, specifically the protections of the Central Bank’s Codes of Conduct. The Central Bank does not get involved in the commercial decision of a European Bank to withdraw services from the Irish market other than to ensure it does this in line with the appropriate rules and regulations, including consumer protection requirements such as communications with customers. The Central Bank continues to monitor Danske Bank's adherence to these rules and is engaging with the bank as the withdrawal progresses.

Other banks continue to be open for new current account business and have confirmed that they will accept accounts switching from Danske Bank where appropriate. Consumers could look at the National Consumer Agency’s website www.consumerhelp.ie for information about choosing a current account. All banks providing current accounts in Ireland are subject to the Central Bank’s Switching Code, which is designed to make the process of switching current accounts easier and quicker and to offer protection and support for consumers when switching bank account. The Switching Code places obligations and time limits on both the old and new bank when completing the switching process. Where accounts include credit facilities, such credit facilities will be subject to the credit assessment process applicable at the receiving bank.

It is for each customer to decide whether to switch a closing account to another bank, and which bank to switch to.

Customers with any concerns or questions about their accounts are advised to contact Danske Bank Ireland directly. Other information is available on Danske Bank’s website www.danskebank.ie. If customers are not satisfied with how the bank is dealing with them, they should firstly complain to Danske Bank. If customers have made a complaint to Danske Bank and are not satisfied with the outcome, they have the right to escalate the complaint to the Financial Services Ombudsman.

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