Christopher O'Sullivan (Cork South West, Fianna Fail)
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320. To ask the Minister for Finance if banks will be requested to reduce card charges for businesses in view of the fact the percentage of card transactions has increased dramatically since the start of the Covid-19 pandemic; and if he will make a statement on the matter. [35031/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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All credit institutions in Ireland are independent commercial entities and the imposition of bank fees and charges are decisions to be made by the boards and management of individual banks which need to be run on an independent and commercial basis. You will be aware that, as Minister for Finance, I have no statutory role in relation to the charges applied by credit institutions. Under Section 149 of the Consumer Credit Act 1995 (the Act), as amended, the responsibility for the regulation of bank fees lies with the Central Bank of Ireland.

I am advised by the Central Bank of Ireland that under Section 149 of the Act, a credit institution must notify the Central Bank if they wish to:

- Introduce any new customer charge for providing certain services; or

- Increase any existing customer charge for providing certain services.

Each notification received by the Central Bank is assessed and robustly challenged in accordance with the specific criteria set out in Section 149 of the Act. Having considered the proposed charge(s) under the assessment criteria as set out under the legislation, the charges are either rejected, approved at lower levels than requested by the credit institution, or approved in full. Credit institutions are free to impose any pricing differentials for the service up to the permitted maximum and are free to waive charges at their discretion for commercial or competitive reasons.

The Central Bank has clearly expressed its expectations that all regulated firms take a consumer-focused approach and act in their customers’ best interests at all times. The Central Bank encourages regulated firms to take all possible measures to assist their customers during this difficult time and to help them to the greatest extent possible while they work through this public health emergency.

Where a regulated entity intends to introduce new charges or increase any existing charges, under provision 6.18 of the Central Bank’s Consumer Protection Code, it must give notice to affected consumers of the introduction of any new charges or of increases in charges, specifying the old and new charge, at least 30 days prior to the charge taking effect.

I would encourage all bank customers, particularly those adversely affected by changes in bank charges, to shop around and compare the fees and benefits of the different bank accounts available. One of my main concerns at the moment, is to ensure that SMEs have access to sufficient liquidity, and that access to credit for SMEs is maintained. The Government has announced a range of measures to assist companies deal with the consequences of the COVID-19 restrictions, and to ensure that they have access to sufficient liquidity. These include tax measures, as well as loan schemes, to assist SMEs. In addition, grant schemes are available through Enterprise Ireland and the Local Enterprise Offices.