Dáil Éireann Debate, Wednesday - 30 April 2014
93. Deputy Pearse Doherty asked the Minister for Finance if he will use his influence at State owned banks to encourage them to institute procedures on cash handling and fees payable more suitable to small community groups. [19396/14]
View answer96. Deputy Pearse Doherty asked the Minister for Finance if he will consider a scheme for State owned banks whereby registered charities and small community groups can avail of free banking. [19399/14]
View answerI propose to take Questions Nos. 93 and 96 together.
As the Deputy will be aware under the Relationship Framework the State does not intervene in the day to day operations of the banks or their management decisions regarding commercial matters. Bank fees and charges are commercial matters for the banks and are subject to regulation under Section 149 of the Consumer Credit Act 1995, as amended. Section 149 came into effect in 1996 and currently requires that credit institutions, prescribed credit institutions and bureaux de change operations must make an application to the Central Bank if they wish to introduce a new customer charge or increase any existing customer charge in respect of certain services. Section 149 does not apply to interest rates; it applies to fees, charges and commissions only.
My Department recently published a review of the regulation of bank fees and charges which is available on the website www.finance.gov.ie. The review concluded that it would not be appropriate to repeal Section 149 at this time. The lack of competition in the banking sector means that the repeal of section 149 would give unfettered price setting power to the incumbent banks. The report recommends that this issue should be revisited when competition in the banking sector has improved significantly.
