Brendan Smith (Cavan-Monaghan, Fianna Fail)
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123. To ask the Minister for Finance the discussions he and his Department have had with the Central Bank in relation to the difficulties that have arisen for some customers of banks (details supplied) in opening new accounts with other financial institutions. [46295/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am in regular contact with the Central Bank of Ireland on a range of matters and my officials also meet regularly with the Central Bank to discuss the withdrawal of Ulster Bank and KBC from the Irish market.

The decisions of Ulster Bank and KBC to leave the Irish market are regrettable and my focus is on ensuring an orderly withdrawal and minimising the disruption to impacted consumers.

The Central Bank, as regulator, has been clear that it expects all retail banks, both those exiting the market and those remaining, to have plans in place to manage the impact of the broader changes and consolidation in the retail banking sector in Ireland.

As part of the Central Bank's supervisory engagement, it has met with the CEOs of the five main retail banks a number of times over the summer in relation to the large scale migration of customer accounts and outlined the need for better planning, customer focused arrangements, proactive communications and system wide engagement.

On 9 September 2022, the Central Bank released statistics on account migration, which indicate that 24% of the current and deposit accounts that were open at the beginning of the year in Ulster Bank and KBC Bank had been closed by end-August 2022. While the numbers are encouraging, I concur with the Central Bank, that the focus must continue to be on ensuring adequate resources and training are in place to ensure a positive customer experience when switching their accounts from KBC and Ulster Bank.

It is the responsibility of the individual banks to ensure that they are putting their customers first, ensuring fair treatment of customers and that customers understand what the changes mean for them.

In this regard, I want to welcome the round table discussion with direct debit originators and their regulatory authorities, hosted by the Banking and Payments Federation of Ireland (BPFI) yesterday, as well as Bank of Ireland's recent announcement that it will open 61 of its branches on the first four Saturdays in October to provide information on moving accounts and to support customers in the account opening process.

My officials and I will continue to monitor the migration of current accounts from the exiting banks and engage with relevant stakeholders, including the Central Bank, to ensure that impacted customers face the least amount of disruption in migrating their accounts over the coming months.

Mick Barry (Cork North Central, Solidarity)
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124. To ask the Minister for Finance if he would support regulations to oblige retail banks to guarantee access to cash across the State through a branch network and ATM network that would allow people to easily access and deal in cash should they so wish; and if he will make a statement on the matter. [46198/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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Over the last decade, we have seen a shift in the way consumers and businesses are paying and banking. While historically Ireland has been a relatively cash-intensive economy, advances in technology and changing customer demands have prompted a rapid increase in the take-up of electronic payments. The Covid-19 pandemic has acted as a potential catalyst for the move towards digital payments and the move away from cash.

Notwithstanding a significant increase in the take-up of electronic payments, cash remains a vital part of the Irish payment system. Banks have a key role in maintaining the flow of cash through the economy and ensuring appropriate access to retail banking services for all in society, including the vulnerable.

The changes currently underway in the Irish retail banking sector are a reflection of the wider challenges the banking sector is facing, not only in Ireland but also abroad. It is because of these changes that I have instructed my Department to undertake a broad-ranging review of the retail banking sector, which is currently taking place.

A key part of the review will be to examine the use and availability of cash in Ireland and determine whether any legislative proposal is needed in this regard.

The public consultation undertaken as part of the review contained a number of questions relating to access to cash. One of these questions noted the concerns which are being raised around access to cash and asked for submissions on what should be done to protect access to cash.

My officials are currently working on the Review and their draft report will be delivered to me in November.