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The Finance Minister will meet Ulster Bank Ireland’s top management today amid concerns that its parent is considering closing the bank’s operations in Ireland.
Paschal Donohoe will meet with Ulster Bank CEO Jane Howard and President Ruairi O’Flynn to discuss a strategic review being conducted by the NatWest Group.
Before the meeting, the Financial Services Union (FSU), which represents workers at Ulster Bank, outlined five key questions it wants the minister to ask the bank.
These include when Ulster Bank learned that its parent was going to conduct a strategic review, what the terms of reference for the review and the timeline for its completion are, and who is conducting it.
The union also wants to know when a statement from NatWest on the future of Ulster Bank’s Irish operations is expected and when talks with stakeholders will begin.
Amid reports that US investment bank Cerberus is considering buying the Ulster Bank loan book, worker representatives are also looking to find out if there has been any direct or indirect discussion between the parties or someone on their behalf.
NatWest has denied that talks are taking place with the so-called “vulture fund”, which was a major buyer of distressed Irish debt after the last financial crisis.
The FSU also wants to know if there have been discussions with the UK Government or the Executive in Northern Ireland regarding the strategic review that is currently underway.
“This lack of clarity is causing great anxiety among 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,” said the Secretary General of the FSU, John O ‘. Connell.
Last month, the Irish Times reported that NatWest was considering a liquidation of Ulster Bank’s operations in the Republic of Ireland as part of a strategic review looking at all options for the lender.
At the time, NatWest said that Ulster Bank’s strategy to grow the bank’s business in Ireland organically and safely remains unchanged but is under review.
Ulster Bank has 2,400 employees in the Republic of Ireland in 88 branches, which means that the closure would have a major impact on customers and competition in the banking market.
The bank’s performance has been below average in recent years, dragged down by the cost of delinquent loans, its relatively small size, and the low interest rate environment.
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