Colm M. Hilliard
Ceist:33 Mr. Hilliard asked the Minister for Finance his views on the viability of a third banking force in the context of a one island economy as adumbrated in the Framework Document. [4939/95]
Written Answers. - Third Banking Force.
The proposals which I will shortly be putting to Government will be designed to contribute to the efficiency of the banking system by strengthening competition within it and permitting the optimum development of the institutions concerned in the interests of their customers and the maxismisation of sustainable employment. The underlying objective is to help to improve the potential of the Irish economy to generate growth.
It is my intention that whatever entity or entities may emerge from this process will be well adapted to the requirements of the banking market. This is clearly also the ambition of the institutions concerned.
I should point out that the banking sector already benefits from a high degree of competition. It consists of a large number of institutions, many domestic and many foreign. EU law prescribes a wide right of establishment within any of the member states to any institution licensed within another member state, and in that fundamental sense there is only one banking market in Europe.
It is also relevant that most of the major banks, including the four associated banks, which have operations in the State already operate north of the Border.
The new framework for agreement prepared by the Irish and British Governments envisages that, with agreement, co-operation to the mutual benefit of all living in Ireland could develop without impediment, attaining its full potential for stimulating economic growth and prosperity. I see no way in which this most desirable perspective would threaten the viability of any restructuring of the State banks which the Government may approve.