The prime objective of the concept of a third banking force was to generate greater competition within the retail banking market. In this respect, much progress has been made over the past few years in opening up this market, reducing barriers and creating greater competition generally. The strengthening of the Competition Authority in the Competition (Amendment) Act, 1996, and the creation of a director of competition enforcement were key developments in this regard. Moreover, the removal of statutory restrictions on the services provided by building societies, which are now emerging as important players in all sectors of the banking market, has resulted in major advances in the availability of services and improved access to those services. The Consumer Credit Act, 1995, has improved the level of transparency in relation to fees and the cost of credit. The recently published Central Bank Bill will bring the central clearing system, operated under the auspices of the Dublin Bankers Clearing Committee, under the supervision of the Central Bank and will confer powers on the bank in relation to the establishment, supervision, and operation of payments systems in the State. Finally, a Credit Union Bill, which is currently being drafted, will broaden the range of services which credit unions can offer, thus contributing further to competition in the market.
The State banking sector has also played a key role in the progress achieved to date. ACC Bank now provides the full range of services expected of a high street retail bank to all its customers. ICC Bank, which provides corporate financing to small and medium-sized enterprises, has developed a range of new and innovative products which specifically address the needs of its particular customers.