Banks need to defend more assertively their decisions to close local branches, a leading banker said yesterday.

In his inaugural address as incoming president of the Institute of Bankers in Ireland, Mr Eugene Sheehy, general manager of AIB Group's retail operations, said banks had a strong case for making changes to branch networks.

"For many decades, there was virtually no change in the branch network. Society assumed that branches were permanent fixtures and, while many other infrastructures such as transport, health and security changed, bank branches remained the same," he said.

Referring to recent bank branch closures that led to protests in some rural communities, Mr Sheehy said the changing population profile meant many branches were no longer in the right place.

"Branches need a critical mass of commercial and social activity to justify their existence but, aside from the migration of people to large urban centres, a number of other factors have impacted strongly on them," said Mr Sheehy.