“Pascal Donoghue is standing idly by while another Bank leaves the Dysfunctional Irish Market."
Aontú Leader and Oireachtas Finance Committee Member Peadar Tóibín TD has again castigated Government inaction on the Dysfunctional Banking Market. He stated;
“Pascal Donoghue is standing idly by while Bank after Bank leaves the Irish Market. The KBC exit is another symptom of a dysfunctional Irish Banking Market. The elephant in the room is the structure of the Irish Banking Market. Mario Dragi, when President of the European Central Bank stated that the Irish Banking market is a “quasi-monopoly”. This is not an accident. Fine Gael proudly announced the “Two Pillar” Banking system 10 years ago. In truth is they created an oligopoly and gave massive supplier power to the two largest banks. As a result these banks have significant control of the market and can do what they want. We have seen in the last few years that they don’t want customers in branch, they have made it harder and harder for customers to do business in their branches and in the end they are shutting bank branches down left right and centre”.
“Ireland’s lack of competition is also a hangover from the last Banking crash. Interest rate pricing in the mortgage market is significantly affected capital requirements, credit risk and the level of non-performing loans. But it is also affected by the lack of competition. Unless these issues are fixed by the government then we will see further concentration of the market. The continuing low interest rates are adding to the pressure on banks that do not have a market advantage”.
“These problems exist in part because Fine Gael and Fianna Fáil have a laizzez faire attitude to markets and they are ideologically inclined and deferential towards the large players in these markets. Just look at the crisis in the Insurance Market, the Housing Market and the Beef Market. Large players with enormous power, a government sitting on their hands and citizens suffering massively as a result”.
"The market needs to be restructured to ensure functionality. This means more commercial players both internationally and home grown. And it means creating diversity within the Banking Market. I have written to the Finance Spokespersons of each political party and group within the Dáil, seeking a meeting to coordinate political will and energy towards the creation of a Stakeholder owned Public Banking System. I’m delighted that three parties have responded positively and urge the other political parties to treat this crisis with the urgency it requires."