HFC BANK has confirmed the closure of its operations based in the Republic, with the loss of 41 jobs.

Staff were informed yesterday of the decision to close the bank's seven branches, currently located in Dublin, Kildare, Limerick and Galway.

The bank said the decision was taken to close its seven Irish branches following a strategic review that recommended a renewed focus on HFC's UK market.

The bank provides credit deals to electrical goods and DIY chains who offer in-store finance arrangements to their customers.

HFC's business in Ireland had formed part of the UK operation, but operating in two different currencies presented a problem for the company, according to HFC Bank UK chief executive Richard Spence.

"We're unable to make economies of scale to counter the extra costs generated by the change in currency.

"The differing regulatory, legal and business climates between the two countries also represents a significant challenge," he said.

"It was not a decision we took lightly, but regrettably it is the only practical long-term option," Mr Spence added.

The bank has now entered into consultations with staff representatives in relation to redundancy terms.