Dáil Éireann Debate, Thursday - 14 December 2017
65. Deputy Eamon Ryan asked the Minister for Finance if his Department has provided a report on the Sparkassen public banking model; and his views on whether there could be a role for such a public banking system to assist small and medium enterprises. [53818/17]
View answer67. Deputy Catherine Martin asked the Minister for Finance his views on the introduction of a public bank model, similar to the German Sparkassen model; and if he will make a statement on the matter. [53550/17]
View answerI propose to take Questions Nos. 65 and 67 together.
As the Deputy will be aware, my Department and the Department of Community and Rural Development, are responsible for fulfilling the Programme for a Partnership Government commitment to "thoroughly investigate the German Sparkassen model for the development of local public banks that operate within well-defined regions".
Local public banking is where a State, or other public body, has ownership of a financial institution. Local public banks in Germany are called Sparkassen. They are only permitted to operate in specific geographic regions. Their aim is also not to maximise profits, but rather promote economic development and financial inclusion in the regional area in which they operate. Additionally, the business model of Sparkassen involves building close relationships with local SMEs.
The investigation of local public banking has consisted of a consultation process with stakeholders and interested parties. There has also been analysis of a detailed proposal on the Sparkassen model and its possible implementation in Ireland. This proposal was put forward by Irish Rural Link and the Savings Banks Foundation for International Cooperation (SBFIC), the international development wing of the Sparkassen group. There have been a number of meetings between their representatives and my officials.
Officials in my Department have been working closely together with their colleagues in the Department of Community and Rural Development. They have now finalised the report on the findings of their investigation and I have received this report and am currently reviewing and considering it.
Along with my colleague, the Minister for Rural and Community Development, Michael Ring T.D., I will bring this report to Government, for approval.
The Deputy may wish to note that there are already significant Government measures in place to support access to finance by Irish SMEs. These include the Strategic Banking Corporation of Ireland (SBCI), the Supporting SMEs Online Tool, the Microenterprise Loan Fund, Local Enterprise Offices, the Credit Review Office and the Credit and Counter Guarantee Schemes.
Additionally, my Department is working with other Government departments to develop tailored and innovative schemes to meet the evolving needs of Irish SMEs, such as the Agricultural Cashflow Support Loan Scheme and the Brexit Loan Scheme I announced in Budgets 2017 and 2018 respectively.
