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THE MORTGAGE PRICING, savings accounts and credit that is available to customers in Ireland will be reviewed under the new government review of the Irish retail banking sector.
Announcing the terms of reference of the review today, Finance Minister Paschal Donohoe said his department is to conduct a broad-ranging review and will report back by November 2022.
Speaking today, Donohoe said NatWest’s announcement that it is going to undertake a phased withdrawal from the Irish market, as well as KBC’s announcement that it is undertaking a number of transactions that will, if completed, lead to its withdrawal from the Irish market feed into the decision for the review at this time.
Bank of Ireland’s decision to close over a third of its branch network, as well as the banking sector has undergoing a period of significant change over the last decade in terms of technology, Covid-19 and Brexit have further accelerated the rate of change, he said.
The review will look at the current retail banking landscape and likely market trends over the next decade. It will also deal with competition, consumer protection and consumer choice, as well as options for the mortgage market.
This review is separate to the mortgage lending review being carried out by the Central Bank.
Services provided by both banks and non-banks will also be assessed, with the minister stating that the latter are becoming increasingly more active in the provision of SME credit and, more recently, in the mortgages market.
Community banking
Donohoe told The Journal that he “looks forward” to hearing the views of those that are advocating for a community banking system.
The 2019 Indecon report on banking found that there was no business case to be made to establish a public banking system in Ireland.
The report said there was no economic case for a State-owned banking network, despite some areas of market failure.
It noted that there was an extensive offering to customers with credit unions, An Post, as well as a number of commercial banking providers in the market.
However, two years on, the Irish market landscape has changed somewhat.
Donohoe acknowledged that representatives from Germany’s Sparkasse public banking sector, who presented the model to Irish politicians in an Oireachtas Finance Committee in 2017, have been advocating for a similar system in Ireland for some time.
“All of these things will be assessed as part of the review,” said Donohoe, whoa added that the government would be guided by the review.
Bankers’ pay
In terms of bankers’ pay, the banking review is going to examine the €500,000 salary cap for bankers employed in the banks that were bailed out by the State.
This will fall under the review of “operational issues arising from the difficulties with staff recruitment and retention”.
Donohoe said “there are no plans for change” in relation to the remuneration policy, but said he accepted that banks will make submissions on the policy in place here, and they will be assessed as part of this review.
Reaction
John O’Connell, General Secretary of the Financial Services Union, has welcomed the publication by the Department of Finance of the terms of reference for the review, stating that it is important that the review is inclusive of different voices and is transparent in its nature.
Donohoe says he expects to hear from all stakeholders, including An Post and the credit unions. He said a public consultation will also form part of this review.
Brian Hayes, Chief Executive of the Banking Federation of Ireland, said:
“What’s needed at this stage is an honest discussion on the challenges and opportunities that banking in Ireland faces. We see this Review as an opportunity to focus on the future and to learn from the past. Banking in Ireland today is entirely different to banking in Ireland a decade ago.”
She is a hero
I seriously have so much admiration and respect for this lady.
This story has recieved a mere 2500+ views compared to the 28,000+ attributed to the story about the shooting in the U.S!!
Makes you wonder what the people of our country think about its people!!
It’s about time this was sorted out, it’s a pity somebody had to die because of it.
Cost of repairing Priory Hall €10million approx / Government pledge to overseas aid €60 million.
Don’t think money was the issue with the state, to be fair! It was a private development that crossed paths with a public body in terms of planning. But the state can’t just write a cheque that easily and its a legal nightmare for everyone! Thankfully the saga appears to have an end in sight!
And what is the cost of going after the IRA builder who built it? Surely he should have to pay most of the 10 million euros?
the ‘ira’ builder…………get a life you troll.
He’s bankrupt. I say chuck him in jail till he pays. ..oh no wait its ireland after all
He has claimed British citizenship to qualify for bankruptcy in the UK. Bet the Sinn Fein lads didn’t like that move by this former hunger striker. You have been v silent on this one Gerry
IRA/SF builder.
I live in Roscrea Co. Tipperary and Tom McFeely built a number if houses at the end of my road which have been abandoned since he became bankrupt and are now vandalised and people are dumping on the sight. The first few to leave began dumping and by that the place became inhospitable for the rest, they all seemed to be renting and towards the end were playing rent to an English company and I think there is only a couple of windows left all have been broken. What a waste of perfectly good houses. They’ve ruined our whole estate which I used to love living in now I am disgusted every day as I drive past those houses!!
We have a harrowing history of forced evictions in Ireland. I can’t believe that we have allowed ourselves -through Government (past and present), our banks and our property developers, but also through our own lack of foresight; to see ourselves as a people in a similar position again.
The Easter Rising leaders must be turning in their graves..
Is this what we have achieved with our unfettered destinies?
This story has nothing to do with forced evictions. Agenda much?
I really would hope that people could have a bit of compassion and understanding for these innocent victims for the lack of proper regulation and standards in the Construction industry. I agree that most people are very supportive and genuinely want this to end. My Child and 88 of her Neighbours have been to Hell and back since 2007 when these apartments first opened. The “Banks” had these death traps inspected on at least 89 separate occasions and no major faults were reported. Coleport The Construction company had a CV with a massive list of failed developments yet they were left with a license to continue to construct death traps. These people were failed by our Government, the Department for the Environment, the Developers and the Banks . It really all came down to GREED & PROFITEERING. If there is any justice most of these Bastards will roast in hell. Every single one of them should be named and shamed, they all have blood on their hands.
Sad state of affairs when it takes a man to take his own life before the government gets its finger out to sort the issue.
Stephanie Meehan should be paid to attend the meeting with the Minister and all the Priory Hall parties. She should have the power to say who said what at these meetings. She is such a capable lady and could cut through the delaying tactics bullshit of all these “experts” These guys need the constant reminder that the crazy delays from all sides have ruined and cost lives.
Brave lady.
I hope KBC choke on the money
That poor woman has been through a lot I hope it is all sorted out soon for that poor woman & the rest of priory hall residents
Not only should it all have been sorted…they ‘Priory Hall Homeowners’ should now also be compensated for the distress it has caused, small comport I know.. thoughts are with you still Stephanie.
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