Donohoe orders bank to warn staff and customers of any closure plans
ULSTER Bank executives have been warned staff and customers must be told quickly if there is any decision to shut the bank down.
Finance Minister Paschal Donohoe expressed concern about the ongoing speculation about the bank’s future here.
His statement came after he met Ulster Bank’s chairperson Ruairí O’Flynn, chief executive Jane Howard and chief financial officer Paul Stanley.
The meeting followed the Irish bank’s UK parent decision to launch a strategic review of operations that may see the business here sold or wound down.
Ulster Bank is understood to have told the minister at the virtual meeting it is business as usual at the bank until there is a decision from its UK parent NatWest.
The minister told the bankers it was particularly important that staff be kept informed of any decisions to wind down the bank.
Ulster Bank confirmed the strategic review was ongoing and also assured the minister that no decision had yet been taken.
It also confirmed there was no set timetable for the review and that it was fully aware of the strategically important role Ulster Bank plays in the provision of financial services to the market.
Mr Donohoe emphasised the importance of Ulster Bank to the national financial services market, the wider economy here and the communities it serves.
He pointed to Ulster Bank’s long history and important heritage here.
The Government has no formal role in the commercial decisions of Ulster Bank, which are a matter for its UK parent company, NatWest, a Department of Finance statement says.
Mr Donohoe committed to further engagement with the bank as the review process continues.
A NatWest spokesperson said: “We had a constructive meeting and an important discussion today with the Minister for Finance who is a key stakeholder in the review under way.”
The bank said its priority was “to continue to remain focused on supporting our colleagues in serving our customers in these difficult times”.
Campaign
The Financial Services Union (FSU), which represents many of the bank’s 2,400 staff in the Republic, had called for the meeting as part of its campaign to prevent Ulster Bank being shut down.
The union said the minister should be told whether any direct or indirect discussion to sell Ulster Bank assets to US vulture fund Cerberus had taken place, and Mr Donohoe should be told when Ulster Bank found out about the strategic review.
The FSU also wants to know what the terms of reference and timetable are and who is carrying it out.
FSU general secretary John O’Connell said staff and customers had been left without any information on its future.
“This lack of clarity is causing huge anxiety amongst the bank’s employees and customers in the Republic of Ireland, as well as for many employees in Northern Ireland who directly support the operation of Ulster Bank in the Republic,” he said.
It was reported last week that US investment firm Cerberus was considering making an approach for Ulster Bank’s €20.5bn loan book.
A spokeswoman for NatWest said no talks were taking place with Cerberus.
NatWest is considering winding down Ulster Bank as part of a strategic review, although such a move is thought to be unlikely.