Vol. 475 No. 8
76 Mr. Callely asked the Minister for Finance the time schedule to establish a third banking force; and his views on whether it is unlikely that he will bring proposals to Government in this regard and that this 27th Dáil will have the opportunity to consider the matter due to the forthcoming general election. [6189/97]
The proposal in relation to the third banking force arose out of legitmate concerns about the level of competition within the Irish retail banking market and problems regarding access to finance and other banking services. Since the proposal was first mooted, there has been significant change in the regulatory framework and in the competitive forces in the marketplace. The influx of foreign-based banks, the increasing role of building societies, the emergence of the credit unions as a viable alternative to the high street banks and the ongoing development of post office counter services are the main changes we have seen in market competition. Moreover, an improved regulatory framework, including the Consumer Credit Act, 1995, the Competition (Amendment) Act, 1996 and Bills on credit unions and the Central Bank currently before the Oireachtas, has already had and will continue to have the effect of sharpennig competition in the marketplace. Finally, economic and monetary union will open up the market further to major external competition from other European and international banks.
This dynamic and changing environment in the retail banking market has obviously had a major impact on our consideration of the future of the State banking sector. There are a number of options available, each of which would have varying impacts on competition, employment and the delivery of cost-effective, customer-based services. At this time, no final decision has been reached on a preferred option and required changes. This complex matter is still under consideration within my Department.
