Perception of a lack of competitiveness in the banking sector to be examined by The Competition Authority.
The Competition Authority have confirmed that they are to launch a study of the banking industry in Ireland.
The retail banking sector here remains dominated by Bank of Ireland and AIB.
Despite the conversion of former building societies to banks and the entry of some foreign banks into the Irish market, Bank of Ireland and AIB between them control over 80 per cent of current accounts. Small business organisations and consumer groups have long complained over the lack of competition in the banking sector. The Competition Authority is now to launch a study into the Irish banking sector to examine this issue.
John Singleton of The Competition Authority says that the perception of a lack of competition exists in many sectors of the economy. The study hopes to discover if this perception reflects the reality.
Terms of reference of the study are to be finalised next week and are expected to concentrate on ease of entry to the banking market and transparency of pricing and competition. A similar study is also being carried out in the insurance industry.
The banking industry believes it has nothing to hide.
In response, the Irish Bankers Federation has said that the industry has nothing to hide. Felix O'Regan of the Irish Bankers' Federation says that the study should address what he describes as misperceptions.
The Competition Authority has no power to alter bank charges and it may be some time before the study is complete and recommendations are made and acted upon.
An RTÉ News report broadcast on 2 September 2002. The reporter is Robert Shortt.
