Government admit they have no plans to increase competition in dysfunctional Banking Market – Tóibín
Today in the Oireachtas Finance Committee Minister Michael McGrath admitted that the Government have no plans to fix the dysfunctional banking market. He admitted that there were no plans to set up a stakeholder Public Bank, no plans to increase the banking capabilities of the Post Office Network or the Credit Union System.
The admission came in response to questions put to him by Finance Committee member and Aontú leader Peadar Tóibín TD; An Teachta Tóibín stated
“This is a Banking Crisis. This is happening because of an unbelievably uncompetitive banking market. The threat to staff, customers, small businesses, farmers and regional Ireland is happening because we have a Duopoly that was created by former Finance Minister Michael Noonan when he created a two pillar banking system. The two large banks have unbelieve supplier power. They can determine every aspects of their engagement with customers. They can do what they like to customers. If customers don’t like it they can get stuffed as they have nowhere else to go. Either do business with these banks or you can start bartering”.
“We need to create a competitive banking market so these banks loose their massive supplier power. This can be done by the creation of a Stakeholder owned Public Bank, it can be done with a Post Office and Credit Union network with real banking capabilities. For 10 years I have heard platitudes when it comes to Credit Unions but no real action taken so that they would have the management capability to really deliver on banking”.
“Instead we have a contracting market with the loss of Ulster Bank. We have a market structure where Irish Banks have to hold 2 1/2 times the capital reserves on mortgages as their European peers. Income streams are reducing on interest rates and the economy is facing into a rocky number of years in our economy. Does the government have a plan to really create competition? Does it have plans to create a Stakeholder owned Public Bank. Does the government have plans for to significantly increase the banking capability of Post Offices and Credit Unions”.
Unfortunately the Minister indicated no plans in these areas.