BANK of Ireland shut its Guernsey office yesterday.

All accounts with the branch, which had operated in the island for the past 16 years, have been transferred to the Isle of Man office.

It was unclear whether the seven staff members had been offered voluntary redundancy or posts at alternative branches. A spokesman for the bank said ‘consultations were ongoing with the employees regarding these proposals and the impact of their implementation’.

A final decision was expected at close of business yesterday. It decided to consolidate its business following a review of operations as a cost-cutting exercise.

‘The decision to exit from our Guernsey operation has not been taken lightly.

‘In any event we want to thank you for your support over many years,’ said an announcement made on the company’s website.

Guernsey currently operates as a branch of the Isle of Man office and the spokesman said many customers would not see any changes in how it operates. There were a number of options for investors.

They could close their account and the balance would be repaid plus accrued interest, without penalty, either by cheque or by transfer to another bank or continue to operate their account from the Isle of Man office.