National Irish Bank's chief operating officer Mr Philip Halpin is to leave the bank in January. Mr Halpin, who was recently seconded to work on a special project within the Australian-owned bank, told NIB yesterday that he would leave in January to pursue a career in the financial services sector. In a statement, NIB wished Mr Halpin every success in his career and has announced that Mr Owen Vanzuyden would take up the chief operating officer position immediately. Mr Vanzuyden (47) took up the position of NIB general manager (banking) earlier this month.

A bank spokesman said Mr Halpin's resignation had been accepted with regret. "NIB is very sad he is going. He enjoys a very good reputation in the group and in banking as an economist. He was offered more than one senior position within the group but he has decided to leave." Mr Halpin took over as chief operating officer in 1996 and has played a central role in reacting to the controversies which have surrounded its operations in the Republic, all of which relate to periods before he was appointed.

Last year it emerged that NIB overcharged customers at certain branches in the 1980s and early 1990s in relation to fees and interest rates. Meanwhile, High Court inspectors together with the Revenue Commissioners are investigating the marketing of unauthorised offshore insurance products by NIB.

Last month, Mr Halpin, drew strong criticism from the chairman of the Dail Committee of Public Accounts, Mr Jim Mitchell, for giving conflicting evidence to the DIRT inquiry. Mr Mitchell has now accepted that Mr Halpin's evidence was due to a genuine misunderstanding.

Mr Halpin gained a high profile within NIB in his previous role as group chief economist. He was unavailable for comment yesterday. Mr Vanzuyden has worked within the National Australia Bank group's British operations since 1996 when he was appointed general manager banking at Yorkshire Bank. In 1998 he move to its sister operation, Clydesdale Bank and later worked on a series of special projects.

The management reshuffled in the Republic is part of a major reorganisation within National Australia Bank which was announced last year.