Matt Brennan
Question:42 Mr. M. Brennan asked the Minister for Finance the proposals, if any, he has to alter, in the near future, the status of any members of the State banking sector; and if he will make a statement on the matter. [3996/97]
Written Answers. - State Banking Sector.
The question of the future structure of the State banking sector has been under consideration for some time in the context of developing measures to improve competition in the provision of retail banking services. This is a very intricate matter involving detailed consideration of the dynamics of the market for banking services and the interactions between the various banks and the markets in which they operate.
The Government has taken a number of initiatives to improve competition, in particular, the implementation of the Competition Amendment Act, 1996 and the Consumer Credit Act, 1995. The market for financial services in Ireland has also undergone major change over the past few years with increasing market penetration by the building societies and the development of the credit unions as major providers of financial services. There have also been developments in corporate financing due to the increasing presence of European financial institutions in the domestic market. All these developments have resulted in greater competition for domestic institutions and it is clear that, with the globalisation of financial markets and the progress being made on economic and monetary union, such competition can only increase with resultant benefits to both corporate and personal banking customers.
The State banks are all performing well in what is a buoyant but extremely competitive market and, at this juncture, I do not have firm proposals to alter the status of any of them.