Pearse Doherty (Donegal, Sinn Fein)
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243. To ask the Minister for Finance if he has met with the CEOs and senior teams of banks (details supplied) regarding the withdrawal of banks from the market; the operational process of personal and business customers closing their accounts with the withdrawing banks and opening accounts with the receiving banks; the number of meetings he has had with each and the dates on which they occurred; and if he expressed concerns regarding the preparedness of withdrawing and receiving banks to execute this transition. [19062/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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While it is regrettable that Ulster Bank and KBC have decided to exit the Irish market, Government has no role in relation to the commercial decisions of any bank. However, it is my priority to ensure that each bank withdraws from the market in an orderly manner.

My officials and I 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.

On 22 September 2021, I met with Alison Rose, CEO of NatWest, Sir Howard Davies, Chair of NatWest, Jane Howard, the CEO of Ulster Bank, and Martin Murphy, the Chair of Ulster Bank, where they updated me on their progress and I emphasised the importance of an orderly withdrawal. Minister Fleming met with the CEO, Director of Corporate Affairs and Head of Corporate Affairs of Ulster Bank on the 8 March 2022 for a further update. On 31 March 2022, officials in the Banking Division met with the CEO, the Director of Corporate Affairs, the Head of Corporate Affairs, the Head of Digital and the Head of Personal Banking at Ulster Bank.

I spoke with KBC and Bank of Ireland last Spring around the time of the announcement of their proposed transaction and engagement has continued. Most recently, on 23 March 2022, officials in the Banking Division met with the Chief Operations Office, Chief Financial Officer and Chief Communications Officer of KBC.

My officials are also engaging with the Banking and Payments Federation of Ireland to ensure that the remaining Banks are prepared to accept applications from customers who are switching from the closing banks. We also engage directly with the banks that are remaining on a regular basis, and at recent meetings the issue of preparedness in relation to account switching has been raised.

Separately, my officials are arranging to meet key representatives from the Credit Unions, An Post and other retail financial services providers to discuss the how they can support customers that have to open new accounts as a result of the withdrawal of both Ulster Bank and KBC.

My Department will be monitoring closely the number of accounts that have closed/switched over the coming months and will continue to engage with all stakeholders to ensure that the impact on consumers is minimised.

On 25 June 2021, the Central Bank engaged with all banks on their expectations of how they manage issues and consumer risks during this period of change, and they are actively monitoring compliance with these expectations.

The Central Bank’s supervision of any bank that withdraws from the market will be focused on ensuring that its customers are treated fairly, and that it remains in compliance with the letter and spirit of regulatory requirements. The Central Bank has clearly communicated the requirement for a customer-focused approach to be taken in all aspects of their business throughout the period of change and that the banks ensure that customers understand what these developments means for them.