Competition Authority Announces Study Of Irish Banking Industry

by Philip Morton, Investors Offshore.com

05 September 2002

The Irish Competition Authority confirmed this week that it intends to conduct a study into the Republic's banking sector, and is currently preparing the terms of reference for a study, to be published on the Competition Authority's website within the next few weeks.

'This consultative process will enable interested parties to offer views and information before the terms of reference are finalised,' Isolde Goggin, Director of the Authority's Regulated Markets, explained. 'In general terms, the study will focus on whether competition in the banking sector operates well for consumers and other buyers of bank services (e.g., businesses).'

The Competition Authority has stressed that this is not a formal investigation, but that it has been decided that the banking sector 'merits closer examination', as banking accounts for more than 4% of GNP in Ireland, and banking services touch all sectors of the economy.

'Many markets for consumer and business banking services are highly concentrated, and the sector is heavily regulated,' the Authority added in justification of the investigation.

However, the Irish Bankers Federation responded to the news with equanimity this week, reasoning that the industry has nothing to hide.

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