asked the Minister for Finance if an application has been made for a merger of all banks in the State into one unit; and, if so, if he considers it is in the interest of customers of such banks to permit such a step to be taken.
Ceisteanna—Questions. Oral Answers. - Banks Merger.
71.
No application has been made to me to approve a merger of all banks in the State into one unit.
For the information of the House the position is that six separate schemes have been submitted for my approval in accordance with section 33 of the Central Bank Act, 1971. Two schemes provide for the transfer to the Bank of Ireland of the businesses of its wholly owned subsidiary banks, the Hibernian Bank and the National Bank of Ireland. A further three schemes similarly cover the consolidation into one bank of the separate banking businesses in the Allied Irish Banks Group, that is, the Munster and Leinster Bank, the Provincial Bank of Ireland and the Royal Bank of Ireland.
The sixth scheme relates to the merger of two subsidiary banking companies of the Ulster Bank consequent on a recognisation of the business.
I am at present considering these schemes in consultation with the Central Bank and will give my decision on them, as required by the Central Bank Act, 1971, before 31st January, 1972.
Does the Parliamentary Secretary not consider that any further merger in relation to the commercial banks would be undesirable and would be detrimental to free financial enterprise here?
No, as I say, this matter is under consideration by the Minister and it would not be proper for me now to anticipate his decisions. The decisions will be announced before 31st January, 1972
The Parliamentary Secretary might consider my question and put the facts to the Minister. I consider that any further amalgamation of banks would be undesirable and against the interest of private finance in this country.
The Deputy is aware that the Central Bank Act, 1971, was considered at great length here and that the Central Bank now have much greater power and authority than they had before and we can rely on them to guide us in this matter.
Would the Parliamentary Secretary not agree that it makes the matter of nationalising easier?
Would the Parliamentary Secretary not agree that it is essential to retain competitiveness within the banking sphere in order to ensure that a monopoly does not arise in that sphere which would be very detrimental to the development of business?
I do not know. I think the apprehension in this matter is the result of an article in the Irish Independent of 1st January and I would like to say that this article was written without any foundation in fact.