Central Bank need to block any proposal to announce exit of banking sector prior to regulatory decisions being made.

FSU calls on Legislators to demand Banks and Central Bank appear before Dail Committee on exit plans.

John O’Connell, General Secretary of the Financial Services Union has called on legislators and the Central Bank and the Competition & Consumer Protection Commission to intervene and set realistic timeframes for the withdrawal process of Ulster Bank and KBC from the Irish Banking Market that take account of the current turmoil in the sector.

Speaking after a meeting with Sean Fleming TD, Minister of State at the Department of Finance Mr O Connell said:

“I welcome the opportunity to brief Minister Fleming today on the scale of the task facing the retail Banking sector due to the planned departure of Ulster Bank and KBC from the market. The meeting was timely with Ulster Bank signalling that they intend to inform its customers that they need to close their accounts in the next six months.

The Minister confirmed he is aware of current operational issues with banks and noted the Central Bank release of a Report on poor service levels in branches and on telephone banking.

Over a million customers will have to transfer their accounts with many vulnerable people facing a traumatic time with little assistance forthcoming from the Banks.

It is clear the sector is not equipped presently to deal with all the issues that will undoubtably flow from the decision by Ulster Bank and KBC to leave the Irish Banking market.

Strong leadership is required from the Central Bank and CCPC to set realistic timeframes underpinned by robust change plans for both the Ulster Bank and KBC withdrawals so it can be managed properly and professionally for the benefit of customers.

Any announcement on departure dates should be delayed until the Central Bank is satisfied that the banks have met the regulators set requirements.

We also asked Minister Fleming to immediately request the attendance of the main retail Banks and the regulator to a special meeting of the Dail committee on Finance, Public Expenditure and Reform and the Taoiseach.

Legislators need to be aware of the profound consequences to the banking sector if this change to the sector is not managed correctly.

Banks have consistently cut costs and staff over the last few years. They are now understaffed and ill prepared to deal with the logistical change facing the sector or indeed the increased workload.  Stress levels for workers in all the Banks is at an unacceptable level. We have heard from our members throughout the sector who are inundated with queries from anxious customers. All Banks have a duty to provide the necessary support for their staff whether that is to staff in KBC and Ulster Bank who require information on their future job status or to staff in the other retail banks who are at the coalface dealing with frustrated customers.

We run the risk of compounding the current crisis in the system unless strong and decisive leadership is shown by the regulators and legislators who must tell the Banks to revisit their stated deadlines for departure, develop a workable plan with realistic timeframes and adopt a customer centric approach rather than an expedient exit for any bank”

ENDS