Bernard Durkan (Kildare North, Fine Gael)
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74. To ask the Minister for Finance the extent to which banking charges for various services remain a concern; and if he will make a statement on the matter. [8819/14]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware bank fees, charges  and commissions are subject to regulation under Section 149 of the Consumer Credit Act 1995, as amended. Section 149 came into effect in 1996 and currently requires that credit institutions, prescribed credit institutions and bureaux de change must make an  application to the Central Bank if they wish to introduce a new customer charge or increase any existing customer charge in respect of certain services. Section 149 does not apply to interest rates; it applies to fees, charges  and commissions only.

My Department recently published a review of the regulation of bank fees and charges which is available on the website . The review concluded that it would not be appropriate to repeal Section 149 at this time. The lack of competition in the banking sector means that the repeal of section 149 would give unfettered price setting power to the incumbent banks.  The report recommends that this issue should be revisited when competition in the banking sector has improved significantly.  It is my view that the current regulatory regime offers appropriate protection to consumers against unjustified increases in bank fees and commissions.