Minister for Finance Paschal Donohoe will meet the Financial Services Union (FSU) today to discuss a range of issues related to the banking sector here.
Among the topics likely to be discussed are the strategic reviews being carried out by Ulster Bank’s parent NatWest of its operations in the Republic, and by Bank of Ireland of its unit in Northern Ireland.
The Central Bank’s consumer protection code, which deals with branch closures and service reduction, is also on the agenda, and comes as a number of banks including KBC and AIB plan to reduce the size of their branch network.
The discussions are also set to include a request by the union for the creation of a national forum on banking to consider issues like accessibility, cultural change and the use of artificial intelligence.
“The main banks in Ireland have all announced strategic reviews in the last number of months, which contain branch closures, cuts to staffing levels and, in one case, the possible closure of the bank,” said John O’Connell, general secretary of the FSU.
“The FSU firmly believes that the Irish banking structure is being eroded in front of us and when we exit from this pandemic, we will be left with a banking structure that is unrecognisable and not fit for purpose for our citizens.”
The national banking forum, if it were to get the go-ahead, would include representatives of employers, unions, Government and consumers.
“That debate should also include a new code of practice for banks, a review of what measures are required to restore trust in the banking system, and a discussion on how change in the banking sector is implemented,” Mr O’Connell said.
The banking sector here faces considerable challenges, as the Covid-19 pandemic and Brexit, coupled with an ongoing low interest rate environment and in some cases higher than desired operating costs, act as a drag on profits.
All five of the main retail banks have announced cuts in their workforce this year, with some also reducing the size of their branch networks in order to lower costs.
Minister for Finance Paschal Donohoe will meet the Financial Services Union (FSU) today to discuss a range of issues related to the banking sector here.
