Neasa Hourigan (Dublin Central, Green Party)
Link to this: Individually | In context | Oireachtas source

20. To ask the Minister for Finance the definition of "market failure" for the purposes of the retail banking review report; the criteria in his view that would constitute market failure in the retail banking sector; and if he will make a statement on the matter. [61119/22]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

For the purpose of the Retail Banking Review Report ‘market failure’ was defined as those instances where competition, if left to its own devices, is unlikely to produce efficient outcomes in terms of prices, output, use of resources.

Markets fail when the market (based on private actors) does not provide a product or service even though the economic benefits outweigh the economic costs. The criteria that would indicate market failure in the retail banking sector includes where there is clear demand for a product or service that is not being met.

The Review Team did not identify any such market failures in the retail banking sector.

Neasa Hourigan (Dublin Central, Green Party)
Link to this: Individually | In context | Oireachtas source

21. To ask the Minister for Finance where responsibility lies in the Retail Banking Review Report for recommendations referring to ‘the retail banking sector’; the way that these actions will be assessed; if there will be any consequences for failure to achieve these actions; and if he will make a statement on the matter. [61120/22]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The retail banking sector has the responsibility to ensure that there continues to be a fit for purpose retail banking sector for the years to come. The sector needs to ensure that interests of consumers and of businesses are its key priority and do the right things to deliver the best outcomes.

It is clear that intervention is needed to better manage the impact of the change that is happening, and in particular to ensure consumers and SMEs are protected, remain included and can continue to access the retail banking system. Timely actions are needed to address certain areas of concern. 

These actions are set out as recommendations throughout the Report. The retail banking sector has thus been asked to: preserve consumers’ and business’ access to cash services (pending development of Access to Cash legislation); increase its levels of collaboration where possible; to ensure that its offerings are appropriate to cater for the needs of adults at risk of harm or abuse; to review its strategies and delivery models for SME credit; to review existing mortgage product suites; and to consider how best to expand its products and services to assist in the transition to a lower carbon future.

To conclude, the recommendations for the sector are their responsibility and it is important the sector seeks to implement them. As the implementation by industry of these recommendations will result in better outcomes for consumers and SMEs with a resulting overall strengthening of the retail banking sector, especially in conjunction with the other recommendations made in the report.