Malcolm Byrne (Wicklow-Wexford, Fianna Fail)
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159. To ask the Minister for Finance the measures being undertaken by his Department to ensure greater competition in the Irish banking and financial services sector; and if he will make a statement on the matter. [67298/25]

Simon Harris (Wicklow, Fine Gael)
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Ireland’s banking and financial services sector is a significant contributor to Ireland’s economy as well as being a provider of both direct and indirect employment.

While competition issues generally are primarily a matter for the Competition and Consumer Protection Commission (CCPC), competitive pressures in the banking and financial services sector can clearly impact on the functioning of the financial system and on the quality and price of credit and other banking services provided to customers.

Regular reviews are required to ensure that the Irish banking and financial services sector remains competitive. At a domestic level, to ensure that competition is maintained, my Department has published two reports in recent years: The Retail Banking Review was published in November 2022 and the Report of the Funds Sector 2030 (Review), published in October 2024.

The Reviews, which were conducted by officials in the Department with assistance from other Government agencies and departments, made a wide range of recommendations to improve both the sector and the customers' experiences; recognising their critical importance to consumers and the economy.

Competition in particular was an area of focus under the Retail Banking Review. The Review recommended that the Central Bank and CCPC build on existing arrangements and establish closer coordination to share perspectives, information and experience on the orderly functioning of markets, consumer protection and competition in the retail banking sector.

Following this, on 24 March 2025 the CCPC entered into a revised cooperation agreement (www.ccpc.ie/business/about/co-operation/co-operation-agreement-between-the-competition-and-consumer-protection-commission-and-the-central-bank-of-ireland/) under section 19 of the 2014 Act with the Central Bank. This agreement provides for increased co-operation between the CCPC and Central Bank in relation to their respective functions.

Another related recommendation from the Retail Banking Review was incorporated in the Provision of Access to Cash Infrastructure Act 2025. This requires the Central Bank to carry out and publish cost-benefit analyses of business standards it proposes to prescribe, as well as for regulations it proposes to make in relation to financial service providers.

Any cost benefit analysis carried out will have to consider the impact of any standards or regulations on consumers and their impact on fair competition.

In addition, the annual Consumer Sentiment Banking Survey was published by my Department in October of this year. These surveys are very helpful to identify trends in consumer behaviour; including product choice, competition and innovation, which in turn feeds into evidence-based policy making.

At a European level the Mario Draghi report on the future of European Competitiveness and the Enrico Letta report on strengthening the Single Market, show the increased importance and focus being placed on enhancing European competitiveness and innovation.

The Savings and Investments Union (SIU) initiative was announced in March 2025, it combines the Capital Markets Union and Banking Union. This seeks to drive competitiveness by deepening the EU’s capital markets, supporting growth and enhancing the resilience of the financial system.

Ireland is a strong supporter of the SIU initiative, and we will work to actively progress and drive forward legislative and non-legislative measures under the SIU.

In addition, the EU Commission has pledged to publish a report on competitiveness in the banking sector in 2026. This report will inform forthcoming EU Commission proposals in the area of banking.