asked the Minister for Finance whether he is aware that the associated banks have denied clearing facilities to other banks unless these other banks agree to maintain interest rates at the level set by the associated banks; and what steps he proposes to take to deal with this restrictive practice.
Ceisteanna — Questions. Oral Answers. - Bank Clearing Facilities.
34.
At present clearing facilities are a matter for arrangement between the commercial banks and I have no statutory function in regard to their provision or the terms on which they are provided. All matters of this sort are however being reviewed in connection with the forthcoming Central Bank legislation.
Would the Minister indicate to the associated banks that he disapproves of this restrictive practice which increases the cost of credit?
There are a number of implications in the Deputy's question which I am not prepared to accept. Up to now the situation has been that this is, if you like, a normal private sector arrangement and the banks, for their mutual convenience, set up a clearing house to clear each other's cheques. In normal circumstances that would be a matter for themselves just the same as for any other group of traders setting up some particular machinery to facilitate them in carrying out their business. However, I think that developments which have been taking place in the banking world in this country necessitate our taking a fresh look at the situation. I would not like to go further than that.
Would the Minister agree that what he terms a "private sector arrangement" could properly be termed a "cartel"?
I think that is a rather strong word in these circumstances.