ACC BANK ANNOUNCED today that it is withdrawing from providing standard banking products, such as deposit accounts and current accounts, to focus solely on debt recovery.
In a statement, they added that during 2014, the bank will close all its business centres to the public and intends to give up its banking licence.
It will however continue to be a regulated entity and said it will support its customers in the agriculture sector, “given its strong heritage in this area”. All funds on deposit with the bank will be repaid in full.
As part of the restructuring there will be a reduction in staff numbers of up to 180 employees. The cost reduction programme will be introduced through a voluntary-led severance programme. Currently staff levels are at approximately 470 employees.
Kevin Knightly, Country Manager, said ACCBank had incurred significant losses since 2008 due to the deterioration of the Irish property market.
“While costs have been cut significantly, including a substantial restructuring programme in 2009, we are heading towards a situation where, without intervention, our costs will exceed our income during 2014. This is an unsustainable position and we need to take action now,” he said.
ACCBank siad it is exploring the possibility of outsourcing a small portion of its loan book, excluding agricultural loans.
Under the bank’s restructuring, there will be no changes to the businesses of Rabobank Ireland plc and RaboDirect, two other operations of the Rabobank Group in Ireland, and they will continue to operate as usual with no impact on their customers or businesses as a result of this restructuring.