Written answers

Tuesday, 24 June 2014

Department of Finance

Banking Sector Regulation

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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147. To ask the Minister for Finance his views on the withdrawal from the Irish banking market by Rabo Bank's ACC division in view of the fact that it has taken over many loans that had been originally issued by ACC Bank; if he is satisfied this is being conducted in an orderly manner and will not cause unnecessary disruption to customers' clients; and if he will make a statement on the matter. [26940/14]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I have been informed by the Central Bank that ACC Bank continues to be regulated by the Central Bank while it still holds a banking licence. Since ACC Bank's original announcement of its commercial decision to withdraw existing day to day personal customer products, services and also to discontinue the provision of personal and business banking products to new customers, the Central Bank has been in communication with ACC Bank. Under the Central Bank's Consumer Protection Code, banks are required to give a minimum of 2 months' notice before they close a consumer's account. It is important that consumers are given adequate notice to allow them to take the required steps to close or transfer their accounts. I am not aware of particular difficulties being experienced by the bank's customers in relation to the withdrawal.

In March 2014 the Government affirmed its commitment to bringing forward legislation to protect consumers whose mortgages are sold to unregulated entities.  My officials have been in constant contact with the Central Bank and the Office of the Attorney General to develop the draft heads of this  legislation.  I can assure the House that the Government remains committed to bringing forward this legislation at the earliest possible date.

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