Banks worry about fallout from BOSI closure

The decision by Bank of Scotland Ireland to pull out of the retail market here has sparked fears of widespread job losses in the sector.

The bank announced yesterday that Halifax was closing its 44 branches and Dundalk call centre with the loss of 750 jobs.

The Unite trade union has said it will strongly oppose the move.

Business journalist Conor Brophy has said further job losses are likely in the banking sector.

Mr Brophy said: "It seems inevitable - the levels of activity are just not there.

"So many of the activities that the banks relied on, particularly commercial lending and commercial property transactions, are just nowhere near the levels they were at in 2006/2007.

"And unfortunately the staff levels are going to have to be adjusted to reflect that."