It comes as little surprise to The Dealer, or to anyone with a whit of sense for that matter, that there is very little public trust in the Irish banking system.

The poor standing of the country’s banks was starkly illustrated by the findings of a recent survey carried out by the Irish Banking Culture Board (IBCB).

In fact, the éist Public Trust in Banking Survey 2022 could just as easily have been titled the Public Mistrust in Banking Survey 2022. It found that close to half the respondents had a low level of trust in the country’s banks.

The figures from the farm sector were even more stark. A shocking 81% of farmers had a low level of trust in the banking industry nationally, while almost two-thirds expressed similar sentiments when asked about their local banks.

Sad indictment

The survey is a sad indictment of the country’s banking system. Customers’ opinions on the banks have not been helped by the hollowing out of the local branch network and the drive to reduce staff numbers and push the public towards online banking.

Commenting on the survey, IBCB chair John Hedigan surprisingly claimed that its findings were a measure of the progress made by “our member banks in rebuilding [public] trust”.

While the report certainly recorded improved relations with the SME sector, the fact that 46% of consumers expressed ‘low trust’ in the banks in 2021 and 2022 surely cannot be regarded as progress.

In terms of agriculture, the report accepts that the services banks deliver do not reflect an understanding of farmers’ specific needs, or the nature of farming’s financial concerns.

Furthermore, it recognises that almost half of the farming respondents felt the banks did not deliver a quality service, while 41% maintained that lending institutions were not responsive when dealing with farmers.

While the report argues that the poor standing of the bank among farmers has been exacerbated by the current challenges being experienced by the farm sector – such as increased input costs and tighter margins – it at least agrees that there is an “urgent need” to address farmer concerns.

Indeed, Hedigan says the report’s findings will “inform our work programme for the year ahead”.

Hopefully this work programme will suggest to the banks that they halt local branch closures, hire more staff to advise and help their customers, and start answering the phones.