Dáil Éireann Debate, Wednesday - 7 December 2022
20. Deputy Neasa Hourigan asked the Minister for Finance the definition of "market failure" for the purposes of the retail banking review report; the criteria in his view that would constitute market failure in the retail banking sector; and if he will make a statement on the matter. [61119/22]
Amharc ar fhreagraFor the purpose of the Retail Banking Review Report ‘market failure’ was defined as those instances where competition, if left to its own devices, is unlikely to produce efficient outcomes in terms of prices, output, use of resources.
Markets fail when the market (based on private actors) does not provide a product or service even though the economic benefits outweigh the economic costs. The criteria that would indicate market failure in the retail banking sector includes where there is clear demand for a product or service that is not being met.
The Review Team did not identify any such market failures in the retail banking sector.
