Malcolm Byrne (Fianna Fail) | Oireachtas source

I wish to follow on from the remarks of the Minister of State, Senator Hackett. Having seen the departure of KBC Bank from significant parts of the Irish market and following the planned closure of quite a number of retail bank branches, it is very clear we are lacking competition in the Irish market. We know that Irish consumers are already paying interest rates roughly double those of other European countries. Therefore, I welcome the call for a full debate around banking and finance in Ireland. However, it needs to be broader. As part of that, we need to give the Central Bank specific statutory responsibility for promoting competition across the financial services market. The Central Bank does not at present have that power to try to ensure we have competition.

If the forum on banking is only comprised of the traditional players, it will be a failure. We need it to be much broader. I worry that if it is the traditional players, it will be like getting horse and cart owners to debate how we make horses go faster while the motor car is being developed at the same time. It is essential that we have consumers in there and, if anything, teenagers and those in their 20s have a greater idea around where the financial markets are and where the products are going. That is part of the debate we need to have. If we look at where the rapid growth is happening in the Irish banking market, with Revolut, N26 and digital accounts, what consumers are looking for is to be able to make instant payments, and the banking sector here has not responded to that. We need a debate around the adoption of the digital euro because Europe is falling behind. I am particularly looking at what is happening in China with regard to the introduction of a digital currency there and what has happened with WeChat and Alipay. We are not competing at a sufficient level in Europe.

With regard to financial literacy, in the leaving certificate review we need to look at the question of the knowledge of financial literacy and taxation to be provided for students at second level.

This is a crucial question for the future of this country. It is a debate about public banking but it is broader and is about how we use technology. If we establish a forum on the future of banking and finance, it has to be consumer-centred.