IBOA welcomes decision to call off bank merger

The Irish Bank Officials' Association has welcomed the Bank of Ireland and Allied Irish Bank decision to abandon plans to merge their IT facilities.

The union had always opposed the plan, saying it was a precursor to the eventual merger of the two banks.

This in turn, the IBOA said, would lead to less competition, the closure of up to 100 branches and the loss of up to 5,000 jobs.

Spokesman John O’Connell said: "Based on the advice we have received, we are confident that the prospect of a full merger of both banks is no longer a reality."

He added that the European Commission would probably not have approved the merger anyway.