Anglo-Irish urges action to restore customer trust

All banks must quickly restore public confidence in the banking system or the trust of the customers will be damaged forever, the chief executive of Anglo-Irish Bank, Mr Sean Fitzpatrick, has said.

He said banks should "enthusiastically embrace the concept of transparency" and help customers understand the charge structures they operate.

He said recent revelations about interest loading, fee charges and off-shore banking meant "difficult and worrying times for bankers". "A terminal breakdown in trust between banks and their customers is too grave to contemplate," said Mr Fitzpatrick. He warned that banks should not deny the seriousness of the issues raised recently or "be surprised by the level of concern they have generated among the public".

He was speaking at a meeting of the Leinster Society of Chartered Accountants in Dublin.

He predicted that there would be two kinds of banking in the future - global multinational banks and specialist niche banks. "If we are going to have globalisation, then there is a real possibility one or perhaps both of the two big Irish banks will be acquired by a large international concern," he said.

"Both banks are mid-size in international terms and I wonder will there be room for mid-size operators when the big boys start flexing their muscles," he added.

"It would be disappointing for the Republic if this resulted in a situation where these two Irish banks are controlled from outside the State."

He said loan decisions for Irish customers are best made in the Republic and "not in Frankfurt, London or New York".

Mr Fitzpatrick said EMU and increasing competition in the banking sector would see an increase in the number of specialist banks. He said Anglo-Irish Bank would continue in its role as a "specialist niche bank".