Finance Committee chair says government pressure ‘essential’ for ‘fairness’ in banking sector

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'The banks are making substantial profits and it is absolutely obscene that the government and the central banks would stand by while this is happening,' said John McGuinness.

THE CHAIR OF the Oireachtas Finance Committee has said “pressure from government is absolutely essential to achieve fairness within the banking sector”.

Harris added that it was “unacceptable” that banks are “trying to have it both ways” and that it is ” utterly offensive for Irish banks to be complete and utter laggards when it comes to passing on the benefits to those who have money on deposit”.Despite nine consecutive interest rate hikes by the European Central Bank this year, Irish banks have been much quicker at passing this rise on to mortgage borrowers than they have been at passing it on to savers.

“That is an essential part of fair banking and there is a need for us to look deeply at the banking structures in Ireland.” Bank Levy Government ministers have poured cold water on the prospect of an Italian-style windfall tax on bank profits. Irish banks are currently the worst at passing on rate gains to savers when compared to the UK, the US, the Eurozone and 18 other European countries according to S&P Global ratings as reported by The Financial Times.When asked if there are any plans to introduce a windfall-tax on bank profits, a spokesperson for the Department of Finance pointed to the bank levy that currently exists.

“So it’s time to look at the changing aspects of banking in Ireland and the non-banks and perhaps it’s time to extend and increase that bank levy right across the sector,” said McGuinness.

 

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