Bernard Durkan (Kildare North, Fine Gael)
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77. To ask the Minister for Finance the extent to which bank charges continue to be monitored by his Department; and if he will make a statement on the matter. [49802/13]

Michael Noonan (Limerick City, Fine Gael)
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I, as Minister for Finance have no statutory role in relation to bank charges imposed by regulated financial institutions. This is a commercial matter for the lending institutions concerned. The Central Bank has advised me that under Section 149 of the Consumer Credit Act, 1995 (as amended), credit institutions, including prescribed credit institutions, and bureaux de change must notify the Central Bank of Ireland if they wish to introduce a new customer charge or increase an existing customer charge, for providing any of the following services:

- making and receiving payments;

- providing foreign exchange facilities;

- providing and granting credit;

- maintaining and administrating transaction accounts.

The Central Bank assesses these notifications based on four criteria as set out in the legislation:

- The promotion of fair competition;

- The commercial justification;

- The effect new charges or increases in existing charges will have on customers; and

- Passing on costs to customers.

The Programme Documents (the Memorandum of Understanding on Specific Economic Policy Conditionality and the Memorandum of Economic and Financial Policies) agreed following the 10th Review of the EU-IMF Programme of Financial Support include a commitment to carry out an assessment of banks’ fee income by end-December 2013 as follows:

The authorities will assess banks’ fee income relative to peers in selected other jurisdictions. Based on this assessment they will complete an external review of the regulation of bank fees.