Minister for Finance Brian Lenihan has said he is disappointed but not surprised at the decision of Postbank to wind down its business by the end of this year.
Postbank, a joint venture between An Post and European bank BNP Paribas Fortis, will wind down its business in a move the Government said was part of the natural shrinking of the financial sector here.
Postbank said it saw no prospect of making a profit in the current Irish market and has become the second foreign-owned lender to announce this month it was pulling out of retail banking.
"I am disappointed but I have to say I am not totally surprised," Irish Finance Minister Mr Lenihan said of Postbank’s decision. "We can't have a limitless number of banks in Ireland".
Postbank employs 260 people directly and has a large retail presence via more than 1,000 post offices.