April 16, 2021
KBC exit a blow to Irish banking sector that requires explanation and action – Pearse Doherty TD

Sinn Féin spokesperson on Finance Pearse Doherty TD has described today’s announcement by KBC Bank that it has entered into a ‘Memorandum of Understanding’ with Bank of Ireland, leading ultimately to its withdrawal from the Irish market, as another blow to the Irish banking sector.

The Donegal TD has called on Bank of Ireland to clarify if it instigated this development, and for any transaction to protect the jobs of KBC staff and the well-being of KBC customers and borrowers.

Speaking this morning, Teachta Doherty said:

“The announcement by KBC that it has entered an Memorandum of Understanding with Bank of Ireland would ultimately result in its exit from the Irish market.

“Coming not even two months after Ulster Bank’s announced exit from the market, this is another blow to consumers, customers and KBC staff.

“This move would reduce competition in an already concentrated market even further, risking higher interest rates for consumers and weaker credit availability.

“Already facing the second highest mortgage interest rates in Europe, KBC’s exit would further consolidate a virtual duopoly between AIB and Bank of Ireland that does nothing to further the interests of consumers.

“Clarity is now needed as to whether this move was a KBC initiative or the result of an offer made by Bank of Ireland.

“Given its impact on KBC staff, customers and the market more broadly, this would be highly inappropriate, and requires immediate clarification from Bank of Ireland and its largest shareholder, the Minister for Finance.

“I am alarmed to learn that KBC’s non-performing loan portfolio is not part of its MoU with Bank of Ireland, risking these loans being sold to vulture funds.

“Many of these loans may have become non-performing as a result of the pandemic’s impact on the borrowers, through no fault of their own.

“Any move by Bank of Ireland to acquire KBC’s loan book should include its non-performing loans, to provide certainty and security for those borrowers.

“The manner in which this development has been communicated to KBC staff has been disgraceful and unacceptable, with no warning or consultation.

“Indeed the CEO of KBC provided assurances in February that the bank had no plans to leave the Irish market.

“Staff will be starting their day facing an uncertain future.

“Any Transfer of Undertakings between KBC and Bank of Ireland should therefore secure the jobs of as many members of staff as possible.

“Staff have a right to immediate clarity on their positions.

“Finally, Sinn Féin have been vocal in calling for the establishment of a ‘Future of Banking Forum’, involving all stakeholders to discuss the state of the Irish banking sector and chart a path forward.

“Today’s announcement only intensifies the need for this forum to be established at the earliest opportunity.”

Follow us online

Latest Tweets

The Government’s Hate Speech legislation must be scrapped!

Government failed to take on board any of Sinn Féin's concerns and amendments about the Bill as it proceeded through the Oireachtas.

It's clear the Bill is not fit for purpose and it must be scrapped. - @Donnchadhol

Government has had 4 years to tackle the issues within healthcare. Sinn Féin has published detailed plans to improve health services.

Tomorrow @davidcullinane will be launching his plan to make local health services better & more accessible for people, families and communities.

I was delighted to visit the Carntogher Community Association in South Derry as they marked their 30th anniversary.

The Association continues to transform the local community, empower and provide new opportunities for people of all ages, and ensure the local Gaeltacht continues…

"Simon Harris has sat at Cabinet Table for 8 years, please don’t try and sell us old wine in new bottles. What we have at best is a Leo lite."

The time is right for a General election. Fine Gael are out of time and out of touch. Call the election. @loreillysf

Load More