Ulster Bank and third banking force
Deputy Pringle pressed for intervention to preserve Ulster Bank and create a third banking force. The Tánaiste said the Government would welcome such a force but NatWest's decision was commercial and any new entity had to be viable.
I want to go back over the exchange the Tánaiste had on Ulster Bank during Leader's Questions and the difficulties that will happen tomorrow when NatWest announces its decision on Ulster Bank. It is vitally important that Ulster Bank is maintained to generate that third force within the banking industry in Ireland. The Minister for Finance is not an innocent bystander in this. We own a 75% stake in Permanent TSB so we can go in and say that we can take over the retail responsibilities of the bank and provide that third force. We should be putting that up to Ulster Bank or NatWest to make sure that is within their consideration, and that is vitally important. I would ask that the Tánaiste would ask the Minister for Finance to make sure that is done so that we can manage our own move away from the banking system.
Comment on this
As I said earlier on, the development of a third banking force that is able to compete with Bank of Ireland and Allied Irish Banks, AIB, would be welcome. It is something the Government would support but any decision on Ulster Bank will be a commercial decision for NatWest. With anything we do in trying to put together a third or a new banking force, we would have to make sure that entity would be successful, viable, profitable and in a position to compete with Bank of Ireland and AIB. That would mean taking on the strong aspects. We would not want to set up a third banking force to fail. We would want to make sure we get it right.