Photo AI
Permanent Trustee Savings Bank (PTSB) plans to close about one fifth of its 77 branches in Ireland - Leaving Cert Economics - Question 5 - 2020
Question 5
Permanent Trustee Savings Bank (PTSB) plans to close about one fifth of its 77 branches in Ireland. (Source: Irish Times, October 2019) (a) Outline one possible rea... show full transcript
Worked Solution & Example Answer:Permanent Trustee Savings Bank (PTSB) plans to close about one fifth of its 77 branches in Ireland - Leaving Cert Economics - Question 5 - 2020
Step 1
Outline one possible reason for the closure of these PTSB branches.
Answer
One possible reason for the closure of PTSB branches is the increase in the use of online and mobile banking. With more customers utilizing digital banking services, the need for physical branch locations diminishes. As technology becomes more integrated into banking experiences, customers are less likely to require in-person services, leading PTSB to reduce operational costs by closing branches that are less frequented.
Step 2
Outline two economic effects of these closures on the Irish economy.
Answer
(i) Rise in unemployment in the banking sector: With the reduction of branches, fewer employees are needed to operate these locations. This can lead to increased unemployment in the banking sector as staff are laid off, which may result in greater demand for unemployment benefits and strain on government resources.
(ii) Loss of banking services to the local community: As branches close, residents may face increased difficulty accessing banking services. For those without transportation, this could mean having to travel longer distances to reach the nearest bank, disrupting access to financial services and potentially reducing the economic activity within local communities.