Bank of Ireland closures 'an abandonment' and 'slap in the face' of rural Ireland

The decision of Bank of Ireland to implement a programme of mass closure of branches has provoked strong criticism from Irish farming organisations.

The news that Bank of Ireland will close 103 branches on the island of Ireland has been met with fierce push-back from both the Irish Creamery Milk Suppliers’ Association (ICMSA) and the Irish Farmers’ Association (IFA).

ICMSA

First off, the ICMSA said the move “will have the net effect of penalising rural areas and the elderly”, with ICMSA president Pat McCormack describing the decision as “effectively an announcement that it is abandoning physical person-to-person business in large areas of the state”.

The reality is that rural towns which are already struggling will be disproportionately hit, he maintained.

Noting the retreat of state services and commercial services, McCormack said “their disappearance from the day-to-day lives of rural communities inevitably means reduced economic activity with fewer and fewer opportunities for people to meet and interact in the normal way”.

He said this was “undoubtedly” contributing to increasing levels of loneliness and sense of isolation

“They want our money but do not want to provide the service or actually interact with us”, he commented.

IFA

IFA president Tim Cullinan said Bank of Ireland’s announcement “comes as a slap in the face to farmers and rural communities who rely on local branches for banking services”.

We estimate that over 80% of the branches identified for closure are in rural locations. The withdrawal of this vital service will discommode those without internet access and people whose preference is to do their banking in person.

Cullinan said the IFA will be seeking an urgent meeting with Bank of Ireland senior management to raise the “unfair targeting of rural Ireland with the closure programme”.

Similar to AIB and Ulster Bank, the bank has signed a deal An Post which will allow personal and business customers to use their local post office for certain services, including withdrawals and lodgements.

IFA Farm Business Committee chairperson Rose Mary McDonagh added that research from the UK has shown that the closure of just one branch reduces lending to the local community by some 64%.

McDonagh concluded that today’s announcement is another hammer blow to the provision of banking services in Ireland following the recent confirmation that Ulster Bank plans to exit the Irish market.