Banking Sector Regulation

Dáil Éireann Debate, Tuesday - 24 April 2012

Tuesday, 24 April 2012

Ceisteanna (110)

Mattie McGrath

Ceist:

202 Deputy Mattie McGrath asked the Minister for Finance the steps he will take to use his stake in the AIB and prevent the bank from introducing its proposed changes which require customers to hold a balance of €2,500 in their current accounts; his views on the fact that these measures will cause undue hardship for customers of the bank and will withdraw money from the local economies and have devastating consequences for local jobs; and if he will make a statement on the matter. [17597/12]

Freagraí scríofa

Minister for Finance (Deputy Michael Noonan)

The Bank's policy in relation to fees is a matter for the management and board of the institution. I have no role in the day-to-day commercial and operational decisions of the banks, which include these matters. These decisions are taken by the board and management of the institution. Notwithstanding the fact that the State is a significant shareholder in the institution, I must ensure that the bank is run on a commercial, cost effective and independent basis to ensure the value of the bank as an asset to the State, as per the Memorandum on Economic and Financial Policies agreed with the EU Commission, the ECB and the IMF.

The Government is acutely aware of the increasing financial stress that some households are facing in the current environment. However, we have observed that free banking offerings have changed significantly in recent times across the industry and that the bank must remain competitive in order to return to profitability and viability. I am informed that AIB considers its proposal to be competitive and in line with the market.