The Department for Business Enterprise and Regulatory Reform (BERR) has confirmed that the UK government is considering the creation of a "People's Bank".
The new ''People's Bank'' would add substantially to the range of financial services available through the country's network of 12,000 post offices. Bank of Ireland currently offers a range of financial services through its partnership with the Post Office and last year extended that contract to run to 2020.
But proposals have been put forward by a coalition of business groups, MPs and unions, which would see a new state-owned Post Bank. The new Post Bank would expand services to match those of high street banks, including debit-card facilities, current accounts, savings plans, loans, business services and financial advice. It is as yet unknown whether Bank of Ireland would play a role in the expanded operation.