Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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210. To ask the Minister for Finance if there is an obligation on institutions to provide a service (details supplied) in a large town once they close; and if he will make a statement on the matter. [60399/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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As Minister for Finance, I do not have a role in the day to day operations of any bank operating within the State. Decisions in this regard, including in relation to branch networks and the provision of ATM services are commercial matters and are the sole responsibility of the board and management of the banks, which must be run on an independent and commercial basis.

That being said, branch closures have a significant impact on customers, and the Central Bank has made clear that any changes to branches are carried out in an orderly manner and carefully consider the impact of these decisions across the entire customer base, including vulnerable customers. On 25 June 2021, the Central Bank issued an industry letter regarding its consumer protection expectations in the changing retail banking landscape.

Within the Central Bank’s Consumer Protection Code 2012 (the Code), there is a requirements that a regulated firm must not, through its policies, procedures, or working practice, prevent access to basic financial services. In addition, the Code requires that banks make clear to consumers when they intend to close a branch, in order to allow consumers to make alternative arrangements. When intending to close, merge or move a branch, a bank must:

- notify the Central Bank immediately;

- provide at least two months’ notice to affected consumers to enable them to make alternative arrangements;

- ensure all business of the branch is properly completed prior to the closure, merger or move, or alternatively inform the consumer of how continuity of service will be provided; and

- notify the wider community of the closure, merger or move in the local press in advance.

The retail financial services sector is undergoing a major period of change. This year so far we have seen several major announcements from the main retail banks. In light of this, on 23 November, I published the Terms of Reference for a broad-ranging review of the retail banking sector in Ireland which will involve extensive consultation with stakeholders, and will include a public consultation to invite views from the public and stakeholders on the key aspects of the review.

My Department will be assisted by other relevant Government Departments and agencies, and will submit its report to me within 12 months of the publication of the Terms of Reference.

Retail banking is fundamental to our domestic economy and I believe it is necessary and timely that we assess how the system can best support social and economic activity for our citizens and businesses into the future.