Bank of Scotland Ireland is to shed 750 jobs from its workforce of 1,600, with most of the redundancies taking effect by July.
The bank is to close down the retail network which it operates under the Halifax brand. But it is expected that 850 jobs will remain in the corporate and commercial banking sections.
The UNITE trade union has strongly criticised the move, saying the jobs could have been saved if a third banking force were set up with a merger between Bank of Scotland Ireland, Permanent TSB, EBS and Irish Nationwide in a bid to get credit flowing in the economy.
The bank, which is owned by Lloyds Banking Group, will also close its customer support centre in Dundalk and its intermediary business, which provides mortgages through brokers. These businesses, along with the retail branches, are being closed for new business from today, but BOSI has said existing customers' savings and investments remain secure. It will also be writing to all its customers
The bank said the Halifax retail business was too small to succeed in a shrinking Irish market. The 44 branches will begin closing from the end of May. Most of the planned lay-offs will be compulsory.
BOSI now wants to concentrate on business lending. It began its presence in Ireland by buying ICC Bank, which specialised in lending to companies.
Other Lloyds Banking Group businesses in the Republic - including Halifax Insurance and Assurance in Shannon and the Scottish Widow operation in Dublin - are not affected. Halifax branches in Northern Ireland are not affected.
The Financial Regulator said it was working with Bank of Scotland Ireland to ensure that customers' interests were protected in accordance with the Consumer Protection Code.
'As required by the code, all customers will be given three months notice of branch closures, the regulator said, adding that mortgages, personal loans and fixed rate savings with the bank will continue to maturity.
