Councillor says bank closures show need for Forum on Banking to support Dublin communities

Cabra/Glasnevin Labour Cllr Declan Meenagh is calling for both the Central Bank and government to act following the decisions by KBC and Ulster Bank to withdraw from the market and Bank of Ireland’s decision to close branches.

“A matter of weeks after the announcement that Ulster Bank is to fold up its tent in Ireland, and Bank of Ireland closing so many branches, the loss of KBC bank should finally prompt the Minister for Finance to establish a formal Forum on Banking to develop a strategic vision for a sector that now looks set to comprise a mere three retail banks,” he said.

“Such a Forum should also examine what enhanced role Credit Unions can also play in supporting the banking needs of our local communities and businesses.

“The Labour Party has previously proposed setting up a new Community Bank based on the German Sparkassen model that would in partnership with the credit union movement could look at providing business banking services.

“KBC plans to sell off their performing loans to Bank of Ireland will serve strengthen the growing dominance of the Bank of Ireland and AIB duopoly in the Irish market.

“For so many towns, villages and communities, credit unions and post offices will soon be the only option for financial services.

“Physical bank branches have been intrinsic to the commercial and social life of main street Ireland but it seems that this is a factor of limited interest to the Central Bank of Ireland as the regulator.

“Experience tells us that once a local bank branch is gone it will never return.”

Councillor Meenagh also made the point that from a competition and consumer point of view the Irish banking sector needs urgent attention from the government.

“It’s time now that the Central Bank stops being commentators in ivory towers and take on some responsibility for setting out a vision for an optimum Irish banking model and how it would better serve an economy and society of our scale and ambition,” he said.

“This has been a traumatic two months for bank staff in Ireland with the withdrawal of Ulster Bank and Bank of Ireland’s series of branch closures.

“It is important that staff and their union are treated with respect in KBC’s negotiations with Bank of Ireland and that jobs are retained and terms and conditions are transferred fully intact.

“As these European banks continue to make the decision to leave, it is now time to have a national conversation – take stock of where we are and move forward putting people first.”