Postbank closure 'a blow to rural communities'

The closure of Postbank, the banking arm of An Post which announced last week it was to wind up at the end of the year, has been described as "a blow to rural communities" by the Irish Cattle and Sheep Farmers' Association (ICSA).

"Since Post Bank opened they have built up a customer base of 170,000 in mainly rural areas," said ICSA rural development chairman John Barron.

"In some cases, those who would not have had a bank account in the past went to Postbank because of ease of access to the service through their local post office.

“The closure will not only have an impact on rural jobs but is also a reduction in services available to rural communities."

Mr Barron said the closure would have particular relevance for the farming community, many of whom opened Postbank accounts to receive electronic subsidy payments from the European Union.

"If this essential service could be maintained by another financial institution this would be a positive development,” Mr Barron said.

Postbank, which employs 260 people, announced on Friday it was to close blaming "unprecedented circumstances within the financial services sector".

It is set to write to customers in the coming weeks to advise them of their options.