Pearse Doherty
Question:180. Deputy Pearse Doherty asked the Minister for Finance to assess the improvement to competition in the banking sector. [43263/12]
View answerTuesday, 9 October 2012
Questions (180)
Written answers
A fundamental element of Government policy as set out in the Programme for Government has been to stabilize and restore an effective and functioning banking system. This involved the radical restructuring of the domestic banking system which was announced last year and recalibrated the banking system by introducing the two pillar banks structure thereby creating a banking sector more proportionate to the size of the economy. Other domestic and foreign players remain important competitive instruments in the sector. With the recovery of the economy their role in providing choice in domestic banking services will be important enhancements to the competitive framework. Separately the Deputy should also be aware that in the European Commission’s December 2011 approval of the Bank of Ireland revised restructuring plan under state aid rules, the State has committed to undertake a number of market opening measures in order to enhance competition in the Irish banking market. Measures included amending Section 149 of the Consumer Credit Act 1995 in order that price regulation and fees will not be applicable to new entrants in their first three years of commencing business in Ireland and other changes to the Consumer Credit Act 1995 to make it easier for new entrants to provide the option of electronic banking. The state aid approval also provides for specific market entry opportunities facilitated by Bank of Ireland to ensure access to the domestic market for interested international competitors should such circumstances arise. As I have previously stated, I would welcome interest that foreign entities may have in entering into or expanding in the Irish market.