Patrick D. Harte
Ceist:29 Mr. Harte asked the Minister for Finance when the third bank is to be set up; and if he will make a statement on the matter.
Written Answers. - Third Banking Force.
I would refer the Deputy to my reply to a similar question on 1 February 1994. As I made clear in that answer the objective of Government policy in relation to a third force in banking is to increase competition in the banking sector while protecting — and enhancing to the extent possible — the development role which the State banks can play in fostering industry, especially small and medium sized industry. Proposals to give effect to this policy have not yet come before Government. The Government will consider the matter when I am in a position to present firm proposals.
The Deputy will be aware from my reply on 1 February and my reply to a related question on 12 October last that I and my Department have been engaged in extensive consultations with relevant parties and in a comprehensive survey of the options available to give effect to the Programme commitment to the creation of a third force in banking. Considerable progress has been made in clarifying and teasing out the steps that will have to be taken in order to achieve the desired objective. This preparatory work is continuing.
The issues involved in this question are many and complex. Any decision has implications not just for the institutions immediately involved but also for the wider financial system. I am therefore determined to take the necessary time to fully explore all the options and only when I have done that will I be in a position to put firm proposals to Government.