Dáil Éireann Debate, Thursday - 22 April 2021
35. Deputy Ged Nash asked the Minister for Finance his views on whether a public review on the strategy for the banking sector should be undertaken to set out a vision for the future particularly at present when he is in a position of significant influence (details supplied).; and if he will make a statement on the matter. [21079/21]
View answerThe announcement by KBC Bank Ireland last week that it is leaving is a very significant development for the retail financial sector in Ireland, particularly as it comes so soon after NatWest’s decision to withdraw Ulster Bank from the Irish market. Firstly, I am concerned about the impact of this decision for KBC’s staff and customers. It also raises concerns regarding wider issues in the retail financial sector, in particular for competition and for the sustainability of the sector. Sustainable and responsible competition in the retail financial sector is vital to ensuring that businesses and consumers have a range of banking options available when using financial services and accessing credit.
My Department and I keep the policy framework for the banking sector under regular review and, in light of the events of the past few months, will further examine the policy framework to ensure that it supports a sustainable and competitive dynamic within the retail financial sector.
I presume when the Deputy is referring to me, as Minister, being in a position of significant influence, he is referring to the shareholding held by me on behalf of the State in AIB, Bank of Ireland and Permanent TSB. However, as the Deputy will be aware, the independence of banks in which the State has a shareholding is protected by Relationship Frameworks, which are legally binding documents that cannot be changed unilaterally. Accordingly, I cannot interfere in the operations or strategy decisions taken by the banks on a commercial basis.
