Written Answers Nos. 41 - 58
41. Deputy Olivia Mitchell asked the Minister for Finance if he is aware of the greatly increased levies on the financial sector being charged by the Central Bank of Ireland to fund the banks’ employees defined benefit pension, and of the impact this could have on new small financial advisory businesses, who themselves may have no pensions; and if he will make a statement on the matter. [35199/15]
Amharc ar fhreagra56. Deputy Colm Keaveney asked the Minister for Finance his views regarding the Central Bank of Ireland's industry funding levy, in light of recent increases in same (details supplied); and if he will make a statement on the matter. [35524/15]
Amharc ar fhreagraI propose to take Questions Nos. 41 and 56 together.
Every year, in order to cover the costs of financial regulation, the Central Bank prescribes levies to be paid by entities subject to such regulation. The Central Bank had briefed industry representatives a number of weeks ago that it was proposing significant increases in those levies in 2015. The proposed increases were driven by a proliferation of legislative regulation and corresponding regulatory activity, a need to meet a shortfall from 2014's levies and an increase in staff pension costs arising from Financial Reporting Standard 17, coupled with prevailing low yields on the bond market.
The Central Bank's original proposals have since been revised to partially mitigate those increases as per a statement of 30th September 2015 published on the Central Bank's website. The revised proposals significantly reduced the increase in pension costs charged to the regulated sector in 2015 which is instead spread over coming years thereby easing the burden on financial services sector firms this year.
It is important to note that a robust regulatory environment benefits the financial services industry by promoting stability, a level playing field and facilitating prudent development and innovation. A well regulated financial services sector also benefits consumers, industry, and the economy at large. In order to ensure a well regulated financial services sector the Central Bank must be sufficiently resourced, particularly in terms of staff who are key to an effective regulatory regime. Pensions are a standard component in financial regulation costs given their link to staff costs.
Under Section 32D of the Central Bank Act 1942, the Central Bank is required to seek my approval for the Regulations prescribing industry levies. Following the publication of the Central Bank's revised proposals, which significantly reduced the pension element of the 2015 levies, I approved the Regulations prescribing the 2015 levies on 7 October last.
42. Deputy Joan Collins asked the Minister for Finance further to Parliamentary Question No.79 of 30 September 2015, if the individual concerned, as a citizen of the European Union, may make a claim for a value added tax refund from the Revenue Commissioners, or equivalent agency, in the European Union state in which the appliance was purchased, given that the mobility appliance in question is not available for purchase in this State; if not, his plans to legislate in regard to this matter; and if he will make a statement on the matter. [35203/15]
Amharc ar fhreagraAs outlined in my response to Parliamentary Questions No 79 of 30 September 2015, as the item in question was purchased outside the State, a refund of Irish VAT does not arise. Therefore, there is no avenue for the individual concerned to claim a VAT refund from the Revenue Commissioners or equivalent agency.
However, the Revenue Commissioners have advised that the individual concerned contact the revenue services in the State in which she purchased the appliance to ascertain whether that State offers a VAT refund similar to the one in operation in Ireland. As Ministerial Refund Orders in Ireland do not discriminate against an individual based on their nationality, it is possible that similar practices exist in other Member States.
43. Deputy Thomas P. Broughan asked the Minister for Finance his plans to cut and restructure the local property tax, which is such a huge burden for low income Dublin households; and if he will make a statement on the matter. [35234/15]
Amharc ar fhreagraAs the Deputy will be aware, it is standard practice for the Minister for Finance to review all tax charges, expenditures and reliefs in the run up to annual Budgets. It is also a longstanding practice of the Minister for Finance not to comment on any tax matters that may or may not be the subject of Budget decisions.
I initiated a review of the operation of the Local Property Tax (LPT) earlier this year. The Review was carried out by Dr Don Thornhill who chaired the Inter-Departmental Group on the Design of a local property tax in 2012. Dr Thornhill's current review focussed mainly on the issue of property price developments, and the outcome of the review has been presented to me in report form and will be published on Budget day. I will be announcing my conclusions on this important issue in this afternoon's Budget.
44. Deputy Thomas P. Broughan asked the Minister for Finance his plans to increase the low contribution of Ireland’s tax revenue from capital and wealth assets; and if he will make a statement on the matter. [35235/15]
Amharc ar fhreagraCapital and wealth assets can be taxed in a variety of ways, some of which are already in place in Ireland. Capital Gains Tax (CGT) and Capital Acquisitions Tax (CAT) are, in effect, taxes on wealth, in that they are levied on an individual or company on the disposal of an asset (CGT) or the acquisition of an asset through gift or inheritance (CAT). Deposit Interest Retention Tax (DIRT) is charged at 41%, with limited exemptions, on interest earned on deposit accounts. Local Property Tax (LPT) introduced in 2013 is a tax based on the market value of residential properties.
Both CGT and CAT rates have been increased significantly over recent years, from 20% in 2008 to 33% in and from 2012, in order to ensure that the taxation of capital makes its contribution to the consolidation of our fiscal position.
I should say, however, that I have no plans to introduce a wealth tax. All taxes are, of course, constantly reviewed and the results of my decisions on the latest review of taxation are being published in this afternoon's Budget.
45. Deputy Pearse Doherty asked the Minister for Finance if and when he will commence the provisions of the remaining sections of the Credit Union and Co-operation with Overseas Regulators Act 2012; and if he will make a statement on the matter. [35245/15]
Amharc ar fhreagraThe Credit Union and Co-operation with Overseas Regulators Act 2012 was signed into law by the President in December 2012.
It was agreed at that time that it would be neither practical nor feasible to commence the Act in its entirety in one fell swoop. Following that, an implementation timetable for the 2012 Act was devised in consultation with stakeholders, including credit union representative bodies.
Commencement of all sections of the 2012 Act has been aligned with the credit union financial year and the introduction of the underpinning Central Bank regulations, with a view to implementation of the 2012 Act in a coherent and cohesive manner. This has provided credit unions with the time necessary to ensure that any required processes or procedures are in place prior to implementation of each tranche.
My role as Minister for Finance is to ensure that the legal framework for credit unions is appropriate for the effective operation and supervision of credit unions.
The Registrar of Credit Unions at the Central Bank is the independent regulator for credit unions. Within her independent regulatory discretion, the Registrar acts to support the prudential soundness of individual credit unions, to maintain sector stability and to protect the savings of credit union members.
While it is important to distinguish this division of roles, it is equally important to recognise that both the Registrar of Credit Unions and myself, as Minister for Finance are working together for the safety of members' savings and the security of the credit union sector.
I have been informed by the Central Bank that the draft regulations set out in Consultation Paper 88 (CP88), will be introduced at end December 2015. It is my intention to commence the remaining sections of the 2012 Act on 31 December 2015 in line with the introduction of the regulations. These sections of the 2012 Act, when commenced, will replace, amend or supplement existing sections of the 1997 Act.
As outlined in the Central Bank's feedback statement on CP88, as part of the consultation process I proposed that in the interests of clarity and fairness, credit unions are provided with details of the process of applying for a retention of savings above the limit amount. I have been informed by the Registry of Credit Unions that all credit unions have been contacted giving further information on its application criteria for the retention of savings in excess of €100,000. The Registry of Credit Unions intends to engage with the representative bodies and to invite comments from them prior to finalisation of the application process. When the application process is finalised, the Registry will provide an application form and explanatory notes in order to assist credit unions. It is anticipated that application forms will be available during December 2015. It is envisaged that applications will be accepted in the first quarter of 2016 and that applicant credit unions will be informed by the end of the second quarter of 2016 on the outcome of the process, which is well within the 12 month transitional period. Where a credit union has demonstrated that it meets the criteria, it will be in a position to retain members' savings in excess of €100,000 held at the commencement of the regulations.
I welcome the steps that have been taken to provide clarity for credit unions on the criteria for the retention of savings over €100,000 and also welcome the proposed engagement with the representative bodies to seek their comments on the application process.
The Central Bank has also informed me that it is committed to undertaking a review of the continued appropriateness of the savings limit, once the impact of the restructuring process can be assessed. It is envisaged that this review will commence within three years of the introduction of the regulations. The Central Bank has agreed to provide regular updates to my Department on developments in this matter.
The Central Bank has further informed me that it is open to working with the credit union sector to ensure that prudent and appropriate business development can be facilitated within the regulatory framework. As set out in the feedback statement on CP88, the Central Bank intends to invite interested parties to discuss business model development in the coming months.
The Government's priorities remain the protection of members' savings, the financial stability of credit unions and the sector overall and it is absolutely determined to continue to support a strengthened and growing credit union movement.
46. Deputy Dara Calleary asked the Minister for Finance the cost to the Exchequer of introducing a 30% flat rate tax to attract skilled foreign workers; the loss to the Exchequer compared to normal income tax, pay related social insurance and the universal social charge rates that currently apply for a person earning €30,000; €35,000; €40,000; €45,000; €50,000; €60,000; €65,000; €70,000; €75,000; €80,000; €85,000; €90,000; €95,000; €100,000 in gross income per year, over a five year period on this reduced tax rate; and if he will make a statement on the matter. [35300/15]
Amharc ar fhreagraDetails for each pay level are listed below, comparing the current net income of a single employee to that of an individual on a 30% flat tax rate, replacing income tax, USC amd PRSI. For the purposes of the calculation no tax credits are available against the flat rate tax proposal. In the absence of numbers of individuals that might avail of such a scheme, it is not possible to forecast an overall cost for the proposal.
|
Income (€) |
Income Tax (€) |
PRSI |
USC |
Net Income (€) |
30% flat tax |
Net Income (€) |
Yield(+)/ Cost (-) per annum |
Yield (+)/ Cost (-) over 5 years |
|
30,000 |
2,700 |
1,200 |
1,245 |
24,855 |
9,000 |
21,000 |
3,855 |
19,275 |
|
35,000 |
3,940 |
1,400 |
1,595 |
28,065 |
10,500 |
24,500 |
3,565 |
17,825 |
|
40,000 |
5,940 |
1,600 |
1,945 |
30,515 |
12,000 |
28,000 |
2,515 |
12,575 |
|
45,000 |
7,940 |
1,800 |
2,295 |
32,965 |
13,500 |
31,500 |
1,465 |
7,325 |
|
50,000 |
9,940 |
2,000 |
2,645 |
35,415 |
15,000 |
35,000 |
415 |
2,075 |
|
60,000 |
13,940 |
2,400 |
3,345 |
40,315 |
18,000 |
42,000 |
-1,685 |
-8,425 |
|
65,000 |
15,940 |
2,600 |
3,695 |
42,765 |
19,500 |
45,500 |
-2,735 |
-13,675 |
|
70,000 |
17,940 |
2,800 |
4,045 |
45,215 |
21,000 |
49,000 |
-3,785 |
-18,925 |
|
75,000 |
19,940 |
3,000 |
4,444 |
47,616 |
22,500 |
52,500 |
-4,884 |
-24,420 |
|
80,000 |
21,940 |
3,200 |
4,844 |
50,016 |
24,000 |
56,000 |
-5,984 |
-29,920 |
|
85,000 |
23,940 |
3,400 |
5,244 |
52,416 |
25,500 |
59,500 |
-7,084 |
-35,420 |
|
90,000 |
25,940 |
3,600 |
5,644 |
54,816 |
27,000 |
63,000 |
-8,184 |
-40,920 |
|
95,000 |
27,940 |
3,800 |
6,044 |
57,216 |
28,500 |
66,500 |
-9,284 |
-46,420 |
|
100,000 |
29,940 |
4,000 |
6,444 |
59,616 |
30,000 |
70,000 |
-10,384 |
-51,920 |
47. Deputy Patrick O'Donovan asked the Minister for Finance when the Revenue Commissioners will issue a tax clearance certificate to a person (details supplied) in County Limerick; and if he will make a statement on the matter. [35306/15]
Amharc ar fhreagraI am advised by Revenue that following compliance with the necessary requirements by the person concerned on 2 October 2015, the Tax Clearance Certificate was issued on 7 October 2015 and was available to view online since that date. If the person in question has any further questions, he should contact Revenue's South West Region on 1890 368 378.
48. Deputy Robert Troy asked the Minister for Finance the way the Cerberus Group is regulated. [35380/15]
Amharc ar fhreagra49. Deputy Robert Troy asked the Minister for Finance the mechanism the public has for bringing complaints against the Cerberus Group, other than through the courts. [35381/15]
Amharc ar fhreagraI propose to take Questions Nos. 48 and 49 together.
It is not my practice to comment on the regulatory status of individual firms. However, the Deputy will no doubt be aware that borrowers whose loans are sold are now protected by the Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 which was enacted on 8 July this year. The purpose of the Act is to ensure that consumers retain the protections they had prior to the sale of their loan. The Act requires entities dealing with the consumer to be authorised by the Central Bank and subject to its Codes of Conduct. Dealing with the consumer is credit servicing and the definition of credit servicing is broad. Owners of loan books who deal directly with consumers, that is, who are servicing their own loan books, need to be authorised by the Central Bank. Otherwise they can have the loan book serviced by a regulated credit servicing firm.
All consumer and relevant SME loans sold by regulated financial institutions are covered by this Act. Borrowers are therefore restored to the protections they previously had, such as the Code of Conduct on Mortgage Arrears (CCMA), the Consumer Protection Code and the Code of Conduct for Business Lending to Small and Medium Enterprises. Borrowers who previously had access to the Financial Services Ombudsman also have this right restored by this legislation. These borrowers, including those whose loans are owned by Cerberus, can complain to the Financial Services Ombudsman if they are unable to resolve the complaint with the firm.
The Central Bank is the competent authority in Ireland for the purposes of the Act and will implement a regulatory framework for credit servicing firms. I understand from the Central Bank that the Cerberus group is not on the list of firms currently authorised by the Central Bank. The Central Bank's registers can be found on the Central Bank's website at the following link: http://registers.centralbank.ie/. The Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 has transitional provisions for firms who now require authorisation provided that they applied to the Bank for authorisation no later than 3 months after the coming into operation of the Act.
Due to the confidentiality provisions set out in Section 33AK of the Central Bank Act 1942, the Central Bank has informed me that it is not in a position to confirm whether Cerberus or any other entity is in the process of seeking authorisation by the Central Bank.
50. Deputy Willie Penrose asked the Minister for Finance if he will provide, in detail, the treatment by the Revenue Commissioners of debt write-down from the perspective of capital gains tax, whereby persons who are insolvent are granted appropriate debt write-downs due to their financial non-viability, and whereby seeking capital gains tax upon such write downs is clearly counter-productive, in terms of a person or family dealing with, or managing, an insolvable debt problem; and if he will make a statement on the matter. [35397/15]
Amharc ar fhreagraI am advised by the Revenue Commissioners that the writing-down of debt in respect of persons who are insolvent does not constitute a disposal of an asset for capital gains tax purposes and does not, therefore, give rise to a capital gains tax charge.
Section 552 of the Taxes Consolidation Act 1997 sets out the rules for determining the allowable base cost of an asset for the purposes of calculating any chargeable gain or allowable loss on the disposal of the asset. The objective of the section is to ensure that the full amount of the cost actually incurred on the acquisition of the asset is allowed.
Section 552 was amended by section 42 of the Finance (No. 2) Act 2013 to ensure that only the real economic capital cost of the asset to its owner is allowed as a deduction in the computation of a chargeable gain or allowable loss on a subsequent disposal. The amendment confines the allowable cost of an asset, in the computation of any chargeable gain or loss arising on its disposal, to the actual cost incurred on the acquisition of the asset. Accordingly, where an asset had been acquired with borrowings from which the borrower has been in whole or in part released from repaying, that part of the cost not actually incurred, is not allowable in computing an allowable loss or a gain. This is to ensure that a person cannot claim the benefit of a base cost that has not, in fact, been incurred. The amendment also provides that, where a debt is forgiven in a year of assessment after the asset is disposed of such that the base cost of the asset will not have been reduced by the amount of the debt at the time of computing the gain or loss on the disposal, then a chargeable gain equal to the amount of the debt released is deemed to accrue in the year of assessment in which the debt is released.
51. Deputy Joanna Tuffy asked the Minister for Finance for an update on the income tax yield from a flat rate of income tax (details supplied); and if he will make a statement on the matter. [35404/15]
Amharc ar fhreagraI am informed by the Revenue Commissioners that the yield to the Exchequer of replacing the current income tax structure (including the Universal Social Charge) with a flat rate of 23% on all incomes is estimated to be in the order of €672 million in a full year. This estimate is based on the removal of all income tax credits including the PAYE, Personal and Homecarers credits. The percentage of the total tax yield from gross incomes in excess of €100,000 would be in the order of 23%.
These figures are estimates from the Revenue tax forecasting model using latest actual data for the year 2013, adjusted as necessary for income, self-employment and employment trends in the interim. They are estimated by reference to 2016 incomes and are provisional and may be revised.
Assuming no changes other than the replacement of the income tax and universal social charge systems with a flat income tax rate of 23%, the OECD progressivity measure of the ratio of the average tax wedge at 167% and 67% of the average wage for Ireland in 2014 would fall from 1.79 to 1. In terms of Ireland's OECD ranking on this progressivity measure, Ireland would move from 2nd in the OECD in 2014 to the bottom of the rankings, jointly with Hungary.
52. Deputy Patrick O'Donovan asked the Minister for Finance if he will confirm who is liable for the local property tax for 2015, if a property was sold on 24 November 2014; and if he will make a statement on the matter. [35405/15]
Amharc ar fhreagra53. Deputy Patrick O'Donovan asked the Minister for Finance if the local property tax is paid in arrears or if it is charged going forward; and if he will make a statement on the matter. [35407/15]
Amharc ar fhreagraI propose to take Questions Nos. 52 and 53 together.
I am advised by Revenue that the rules for determining a liable person in respect of Local Property Tax (LPT) are set out in the Finance (Local Property Tax) Act 2012 (as amended).
Section 11 of the Act defines the 'liable person', as the person who is entitled to the immediate possession of the property on the 'liability date'. The 'liability date' for the 2013 half-year was 1 May 2013 while for subsequent years it is 1 November in the preceding year; for example the 'liability date' for 2015 was 1 November 2014.
In the scenario quoted by the Deputy in Question 35405-15 it is the vendor, as the person who was in possession of the property on 1 November 2014, who is liable for the 2015 charge.
In regard to Question 35407-15, I am advised that Section 119 of the Act specifies the statutory payment date/s for LPT. For the 2013 half-year the payment date was 1 July 2013 and is 1 January for all subsequent years, for example payment for 2014 was due on 1 January 2014, payment for 2015 was due on 1 January 2015 and payment for 2016 will become due on 1 January 2016. However, where a property owner chooses to use either the Single Debit Authority or Annual Debit Authority payment option to meet his/her LPT liability, Revenue will not deduct the amount until 21 March in the due year, for example the payment due on 1 January 2016 will not be deducted until 21 March 2016.
Revenue also provides for payment of LPT on a phased basis beyond the statutory 1 January due date to assist people in meeting their liabilities in a manner that best suits their individual circumstances. Where property owners wish to avail of such an arrangement, having paid in a single payment the previous year, it is very important that they confirm their phased payment method preference to Revenue by the end of the preceding November so that the required arrangements can be put in place from the beginning of the due year.
Where a property owner is already availing of a phased arrangement via direct debit from a bank account or through deduction at source from salary or pension there is no need to make any contact with Revenue as the payments automatically roll over from one year to the next.
54. Deputy Terence Flanagan asked the Minister for Finance his views on correspondence (details supplied) regarding the payment of taxes; and if he will make a statement on the matter. [35413/15]
Amharc ar fhreagraAs the Deputy is aware, the administration of tax system is under the care and management of the Revenue Commissioners.
I am advised by Revenue that it adopts a risk-based approach to the deployment of resources in supporting and enforcing, through a range of compliance interventions, a strong compliance culture across all business sectors including the restaurant and fast food sector. In 2014 2,656 compliance interventions were carried out in the sector giving rise to a yield of €8.4m in tax, interest and penalties.
If the person concerned has any information of specific instances of suspected tax evasion in this sector, he may provide such information through Revenue's dedicated on-line Reporting Form for the shadow economy available on their website at http://www.revenue.ie/en/business/shadowconomy/reporting.html or submit directly to his local Revenue office.
55. Deputy Eamonn Maloney asked the Minister for Finance given the the success of the home renovation scheme, if a provision will be made for home owners who have no tax liability to gain a refund of the value added tax content of the cost of the renovation job; and if he will make a statement on the matter. [35421/15]
Amharc ar fhreagraThe Home Renovation Incentive (HRI) came into operation on 25 October 2013 and will run until 31 December 2016. The incentive provides tax relief for homeowners by way of a tax credit at 13.5% of qualifying expenditure incurred on repair, renovation or improvement work carried out on a principal private residence. This scheme is not a VAT refund. Qualifying expenditure is that which is subject to the 13.5% VAT rate. The work must cost a minimum of €5,000 (inclusive of VAT) which would attract a credit of €595. Where the cost of the work exceeds €30,000 (exclusive of VAT) a maximum credit of €4,050 will apply. The credit is payable over the two years following the year in which the work is carried out.
As the HRI is a tax relief, it is not possible to extend it to individuals who pay no tax. However, unused credits may be carried forward to future years so that if in the future an individual becomes liable to income tax, the credits will be available to them at that stage.
In relation to the proposed refund of VAT, the EU VAT Directive does not specifically provide for the introduction of schemes for VAT refund. While providing a compensation method does not affect VAT being charged according to the Directive, this is not clear cut, as it is generally counter to the provision that VAT should be paid by the final consumer of goods and services.
It is for this reason that Ireland has not introduced any new VAT refund orders since the 1980s. The existing refund orders are all historic, going back to the 1970s and 1980s, and any changes to VAT refunds since then have been either by EU requirement or by making minor changes to existing refund orders.
It is worth noting that the SEAI operates the Better Energy Homes Scheme where cash grants are provided for qualifying works. The SEAI also install energy efficiency measures at no cost to qualifying individuals under the Warmer Homes Scheme. Further information on these schemes is available on the SEAI website, www.seai.ie
57. Deputy Finian McGrath asked the Minister for Finance the position regarding the Central Bank of Ireland and a professional licence for a person (details supplied); and if he will make a statement on the matter. [35546/15]
Amharc ar fhreagraI am informed by the Central Bank that it is precluded from commenting on matters arising in respect of individual firms.
I am also informed that, in general, the application process for persons seeking authorisation as an insurance, investment or mortgage intermediary includes a robust assessment of the applicant and any persons proposed to hold a pre-approved control function (PCF) role within the applicant, in line with the Central Bank's Fitness and Probity regime. For sole traders, this fitness and probity assessment also includes the completion of a Garda Vetting process.
This process whereby the Central Bank exercises its statutory "gatekeeper" role provides that an authorisation will not be granted to a firm or its PCF role holders until the Bank is satisfied that all relevant issues raised with the applicant have been dealt with satisfactorily.
I am informed that the Central Bank aims to process 90% of applications within 3 months of receipt of a complete application. This timeline is dependent on the quality of information received from the applicant and the turnaround times of responses to any subsequent queries raised in respect of the application. The time taken by an applicant to address matters raised by the Central Bank during the application process is excluded from this service standard.
58. Deputy Pearse Doherty asked the Minister for Finance his views on the assessment in a recent Central Bank of Ireland report that Irish rates for lending to businesses have diverged from the Euro area average over the past year, as rates fell in many countries; that business lending is now 1.24% points above the average; his plans to tackle this divergence; and if he will make a statement on the matter. [35617/15]
Amharc ar fhreagraThe Deputy will be aware that in my role as Minister for Finance I have no direct function in the relationship between the banks and their customers. I have no statutory function in relation to the banking decisions made by individual lending institutions at any particular time. These are taken by the board and management of the relevant institution. This includes decisions in relation to product interest rates as determined by the banks from time to time.
The recent CBI publication, "Microfinancial Review 2015:1", states that "the mean rate on SME loans during 2014 was 5 per cent in Ireland, compared to 3.5 per cent in the euro area." However, the report goes on to note that "differences in the underlying lending composition, however, may be a factor here. For example, the data include restructured and renegotiated loans, of which there is likely to be an increasing share in Ireland. Cross-country differences are also likely in terms of loan type and borrower type."
It should be noted that in the most recent Department of Finance SME credit demand survey, covering the six month period to March 2015, only 1% of SMEs that did not demand credit thought that it was too expensive to borrow. The same survey notes that, among those SMEs with outstanding loans, the average cost of credit across all outstanding loans is 3.9%. This is down slightly from 4% in September 2014. 36% of SMEs with outstanding loans report a very low cost of credit between 0-2% , while the majority (61%) have an average cost of credit of between 3-10%.
In addition, the lower cost funding by the Strategic Banking Corporation of Ireland (SBCI) should act as a catalyst for downward pressure on interest rates by fostering greater competition in the marketplace. The establishment of the SBCI is a further important step to help Irish businesses, and the crucial SME sector in particular, to grow and contribute further to our economic recovery.
This creates positive competitive pressure in the banking infrastructure, encouraging new entrants while also pushing existing financial providers to better meet the needs of their clients.
