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A NEW BODY which will work to improve the culture of the Irish banking sector has launched today.
The board is funded by five Irish retail banks – AIB, Bank of Ireland, KBC Bank Ireland, Permanent TSB and Ulster Bank.
The Irish Banking Culture Board (IBCB) will be required to publish regular summary reports to measure progress.
It will be chaired by retired Court of Appeal judge Mr Justice John Hedigan. Other members of the board are:
The Central Bank of Ireland’s director general financial conduct, Derville Rowland, today said the establishment of the IBCB was a welcome step on the roads towards building a consumer focused culture in retain banking.
However she said it was “not a substitute for effective regulation, assertive supervision and robust enforcement”.
The decision to establish this new body came after the full scale of the tracker mortgage overcharging scandal emerged. The Central Bank assessed the behaviour and culture of the pillar banks after the scandal and found that while all five had taken steps to reinforce the consideration of the consumer interest, some had “a distance to travel”.
The Central Bank has said this remains the case today.
“I would like to be able to tell you that all the banks addressed the questions we raised and that they passed that test with flying colours. But in reality, it was a mixed picture,” Rowland said.
While some plans were better than others, only one bank submitted a truly considered, comprehensive plan. We have given the banks our feedback. Now they must take it on board and address those shortcomings.
Today the Irish Banking Culture Board (IBCB) said it aims to rebuild trust in the sector and promote fair customer outcomes.
“Following a loss of trust in the banking sector, rebuilding wider society’s confidence in the industry will not happen overnight; it will take time, courage and commitment,” said IBCB chair Mr Justice Hedigan.
“That journey begins in earnest today, informed by the voices of bank staff, customers and stakeholders from across Irish society.”
He said the composition of the board was based on feedback from the public consultation. He said it was important the banking sector should be represented on the board by people in senior positions as they can influence companywide decisions.
However he said the body was also mindful that the board “needed to represent independent voices, including the voice of the public”.
Acting CEO Marion Kelly said the public feedback in the consultation “makes sobering reading” but it was necessary for the sector to listen to these views.
“Through the consultation we have identified a role for the IBCB to help banks be more transparent, and to benchmark their progress in changing the way they conduct themselves for the good of their staff and the people and communities they serve,” she said.
“Each of the five founding member banks has its own internal culture change programme underway and progress is being made. However, the bank employee culture survey shows that more work is required to create an open environment where staff feel comfortable to raise concerns, where concerns are listened to and where staff’s sense of well-being is a key focus.”
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Mere window dressing. The underlying culture in Irish banks won’t change. Not when they are guaranteed to be be bailed out if they behave badly.
@Michael Berchmans: Absolutely BY STATUTE that give min for finance power to make bank debt our debt for a period nominated by hime or her at any time for as long as it is on statute book and power to nominate this period and pay during it out of the central fund with no need to go to that dail for its approval ? eg to pay a few more billion for a part of anglo debt ? Think TD need to be told they were never given a mandate giving one person so much power of the use of central fund wihtout any dail involvemenet that is ther job for taxpayer and to use ter vote also ratehr tha makeing banks debt our to get betetr terms on loan form eu and imf to irel
@Michael Berchmans: The biggest housing meltdown of all time and still nothing changes, we vote for it so we deserve it lets face it.
@Michael Berchmans: exactly… these muppets are meeting at our great expence to figure out how to continue corrupt practices while appearing to be “listening” to the customer. Yawn!
@Michael Berchmans: agree. More admin rubbish to stall progress. The ESB do it also to prevent the development of green energy in Ireland.
It won’t happen overnight? The crash happened 11 years ago and now they’re setting up an authority to oversee themselves? The government and Central Bank have a lot to answer for. Joke shop.
@Bingobango: Banana republic level.
How to have a better relationship with their new vending machines.
The Culture Board seems to have more members than they ever had tellers, anyway.
@WoodlandBard: True that. I love my local branch. It’s so painfully hip, I forget to do any banking, and try and order a panini…
The mistake is believing that banks only sell financial products, they don’t, they primarily sell trust (or at least, should). Having been exposed as untrustworthy, they’ve opened the door for cryptocurrencies, non bank financials etc, they deserve the bad things coming their way.
@Sega Yolo: and security which I don’t think they have either i
Why is this board made up of all bankers? Surely if they wanted to change the culture in the banks, the board should be all non bankers or a mix of bankers and non bankers. How are they going to get a perspective from outside their banking bubble?
The pac, public accounts committee, is made up of politicians, and its a farce, there is zero accountability in our politics.
Too little too late!
This is like the drink aware thing – funded by the producers. Doing it themselves so they can be seen to be doing something and keep official government (for what it’s worth)regulation & governance out.
Drinkaware (but keep drinking)
@sequoia: Drinkaway
Ffs….. this is just to placate the masses that protest at the corruptness of not just these banks, but this government’s incompetence in holding them to account! The sooner the better citizen’s in this country wake up, the better (for us all).
less than a week after AIB chiefs calling for the 600,000 a year cap to be removed !!
Another waste of time and money, but at least they’ll cover the cost by charging us for it.
It won’t happen at all
“It won’t happen” – there you go, fixed the headline
So the body is to improve the culture of our banks…but it’s made up of bankers.
All of ye on here moaning away as usual,but yet again when it comes to voting ye know ye won’t change..unless the government is changed nothing else will change..so remember everything when the day comes!!!
I’ll never thrust Ulster bank again after being with them near on 30 years. No loyalty to it’s clients in my opinion
brilliant ulster bank bringing charges for everything from April 19 has made me open an n26 account to reduce my charges. also they’ve got rid of counter staff and basically seem to have told them to be as unhelpful as possible. and don’t even get me started on a in or bank of Ireland whose sole existence seems to be to be rude to customers
Chaired by Jonathan Sugarman!
I must say my bank the Ulster in Sligo are very helpful and courteous in my opinion. As a person who has difficulty in going on the internet line this is very good.
@Marty from Sligo: in contrast my local Ulster Bank closed. As did my local AIB. As did my local BOI. However that all told me that it was so that they could improve the service that they offer to me. I’m delighted that they value my custom so much. I’d say that I’ll notice the “improved service” any day now.
@Cheeky Charlie: Ulster Bank closed the second branch in Sligo Town and closed my old local branch which covered the south of the county; leaving one bank to cover the entire county (and a swathe of Roscommon too). They also instituted fees on all accounts about 6 years ago. We’re paying them for the ability to loan our money out, for a dwindling branch network and in remaining branches, for the privilege of being herded towards an ATM wherever possible.
When bankers have to be supervised like little children in a creche,its time they were got rid of.
@@mdmak33: In reality they get promoted, mores the pity.
I see a large number of these so called overseers are representatives of the bloody banks…..enough said.
Lol so basically a group of highly paid CEO’s and big wig proponents of cut throat capitalism are going to sit around a table and discuss ethics!
Netflix should ask if they can put in a camera, I’d watch that show! Hilarious
The new phrase been bantered about now is…….a sustainable banking system….like wtf does that even mean. ..
That does not relieve, taxpayer from the power given to min for finance to to day or some day in the future allocating the ‘borrowing obligation and liabilities of banks and former banks as ‘our borrowing obligation and liabilities for a period nominated by home under the act with mandate to pay ( eg p note) during that period for as long as that statute on the statute books and without having to go to dail for it. The Minister ( any minister ) would not have that power without VOTE OF TDS
Should have happened long ago. Our banking collapse wiped away a lot of cobwebs.
The foxes are guarding the hen house and the gombeens continue to vote for this shitshow. Jails should be full of bankers not boards.
They should also improve working conditions for front line staff.
Coming from an ex banker who broke her back for her job. And was just another number.
Lol so basically a group of highly paid CEO’s and big wig proponents of cut throat capitalism are going to sit around a table and discuss ethics!
Netflix should ask if they can put in a camera, I’d watch that show! Hilarious
Sort out the tracker mortgage scandal before spending on quangos. Bank Tracker rates of 3.25% should be around 1% or less. Sort this out ye shower of bankers.
@Bren Guiden: explain what do you mean by that? Your tracker interest rate Is led by the margin above the ECB base rate that you signed for.
Yet another Quango
How much will the “bord” members get paid and who chose them?
one look at the board tells it all..
the banks have no incentive to change anything
another useless quango is born
and guess who will pay for it ?
bank customers through bank charges and higher interest rates..
Trusting banks is a ridiculous idea.
The so called banking crisis was fine for the banks and bankers. Our politicians decided to trust the banks, and then reward them for their failures.
The question is cannot trust the banks, can we trust the Central Bank to protect consumers?
I doubt it!
Independent me hole!
Does the culture not start at college teaching students about finance and business in those courses. As now those courses are taught in a way that leaves out the consequences of what greed can do???
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