Richard Bruton
Question:436 Mr. R. Bruton asked the Minister for Finance if he has received a proposal for the establishment of a forum on banking to debate the future of the banking industry; and his views on the proposal. [16894/02]
Written Answers. - Banking Industry.
In early September I received correspondence from the Irish Bank Officials Association which, inter alia, proposed a national forum on banking. It has also included this proposal in its submission to my Department's public consultation on the Central Bank and Financial Services Authority of Ireland No. 2 Bill, 2002.
I agree with the IBOA that the Irish financial sector is a major contributor to the economy, and that there is a need to ensure a strategic approach is taken to its development. To this end I established, in November 1999, the joint Department of Finance and Central Bank Working Group on strategic issues in the banking sector, which reflected on the future challenges facing the industry. The working group, which consulted widely in carrying out its deliberations, published its report as recently as August 2000. It made many recommendations which guide and inform policy development in this area.
The Deputy will be aware of the Central Bank and Financial Services Authority of Ireland Bill, 2002, which passed Second Stage in this House on 19 June 2002. This initiative will mark a considerable upgrading of financial services regulation. I appointed an interim board, on a non-statutory basis, on 16 April 2002. As I mentioned earlier, I have had a specific public consultation on the proposed Central Bank and Financial Services Authority of Ireland No. 2 Bill, 2002, and I would like to acknowledge the many contributions received, which will receive careful attention. It might also be noted that the proposed legislation provides for ongoing structured con sultation by the new regulatory authority with statutory industry and consumer panels.
The correspondence I have received from the IBOA makes reference to competition issues, and I might mention that the Competition Authority announced on 13 September a preliminary consultation on the terms of reference of a study on competition in the provision of banking services in Ireland.
In view of the quite recent consideration given by the joint working group to the strategic challenges in the banking sector, the public consultation carried out in the context of the Central Bank and Financial Services Authority of Ireland legislation and the Competition Authority's proposed study, I do not feel that there is a need to establish a forum on banking at this time.