Robert Dowds
Question:219. Deputy Robert Dowds asked the Minister for Finance the reason Ulster Bank was fined €3.5 million; and if he will make a statement on the matter. [46246/14]
View answerTuesday, 2 December 2014
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The Central Bank fined Ulster Bank Ireland Limited €3,500,000 and reprimanded it in relation to IT and governance failings by the firm that resulted in approximately 600,000 customers being deprived of essential and basic banking services over a 28 day period during June and July 2012.
The Central Bank found that the firm failed to have robust governance arrangements in relation to its IT systems and controls and that, as a result, a major and prolonged IT failure occurred. Alongside causing widespread and significant loss and inconvenience to customers, the IT failure also threatened confidence in the operation of the retail banking sector as it effectively prevented the firm from participating in the process used to settle payments among banks ("clearing"). On 13th November Mr. Jim Brown CEO of Ulster Bank appeared before the Joint Committee on Finance, Public Expenditure and Reform at which he said that a total of €59 million was paid to Ulster Bank customers in Ireland. An extensive settlement agreement release is available at www.centralbank.ie.