Michael McGrath (Cork South Central, Fianna Fail)
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184. To ask the Minister for Finance his views that the bank levy is anti-competitive; his views on the way the levy will impact on the ability to attract new entrants to the Irish banking market; and if he will make a statement on the matter. [7782/14]

Michael Noonan (Limerick City, Fine Gael)
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The Financial Institutions Levy announced as part of Budget 2014 is a revenue raising measure which allows for a contribution from the banking sector to Ireland's economic recovery. The levy will be in place for three years with an anticipated annual yield of €150 million. As the levy is a percentage of an institutions DIRT liability in 2011, liability to the levy will relate to the size of an institutions Irish operation. The size of the levy is not unreasonable and should not jeopardise the banks competitive or liquidity position.  

The entire banking system has been underpinned by the strong Government support provided both here and abroad. I believe it is appropriate that the banking sector should make a contribution to the State's economic recovery.  

As liability to the levy relates to DIRT payments in 2011, the levy should not impact on new entrants to the Irish banking market unless such new entrants take over the deposit taking business of a financial institution which had relevant DIRT payments in 2011.