Written answers
Thursday, 22 June 2023
Department of Finance
Banking Sector
Bernard Durkan (Kildare North, Fine Gael)
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219. To ask the Minister for Finance the extent to which he and his Department continue to monitor the levels of bank charges being imposed by various banks; the basis for such charges, nationally and internationally; and if he will make a statement on the matter. [30448/23]
Michael McGrath (Cork South Central, Fianna Fail)
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As Minister for Finance, I do not have a direct function in the operations of any bank. Although the State is a shareholder in some of the banks operating in the State, they must be run on a commercial and independent basis, and their independence in this regard is protected by the relationship agreement.
The charging of fees is a commercial decision for regulated entities, but this is subject to the regulatory framework which is the responsibility of the Central Bank of Ireland. Under Section 149 of the Consumer Credit Act, 1995, credit institutions must notify the Central Bank if they wish to introduce any new customer charges or increase any existing customer charges, in respect of the provision of any of the following services:
- making and receiving payments;
- providing foreign exchange facilities;
- providing and granting credit; or
- maintaining and administrating transaction accounts.
In fulfilling its statutory role under Section 149, the Central Bank assesses these notifications in accordance with the following specific assessment 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.
Credit institutions are free to impose any pricing differentials for the service up to the permitted maximum and are free to waive fees at their discretion for commercial or competitive reasons.
The letter of direction also sets out that credit institutions must publish the charges to be imposed on notices, leaflets, and promotional material etc. which should be made available to customers and on the credit institutions website if appropriate (the withdrawal of the fees will also be notified to the relevant customers prior to withdrawal).
Where a regulated entity intends to introduce new charges or increase any existing charges, under provision 6.18 of the 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.
In relation to current account fees, the Deputy may wish to note that the Competition and Consumer Protection Commission operates a comparison tool for current accounts (including information on fees) on its website. This can be used by consumers to find the account which best meets their needs.
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