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The Finance Minister says consumers will still have choice despite KBC Bank's attempts to exit the Irish market.
It's in talks with Bank Of Ireland about selling its performing assets and liabilities, while it's also looking to find a buyer for its non-performing mortgage loans.
The Central Bank says customers do not need to take any action now, as talks will take a period of time.
Finance Minister Paschal Donohoe says it's another indication of changes in banking here.