Banking competition and Revolut
Marc MacSharry argued that Ireland's banking and fintech framework is discouraging competition, citing Revolut's withdrawal of an Irish banking licence application and jobs moving to Lithuania. The Chair repeatedly warned that time was exhausted, and the Taoiseach said Finance was examining fintech and bank competition but could not go into detail.
The programme for Government committed to supporting the European Central Bank and the Central Bank of Ireland in encouraging competition in our banking sector and to develop the fintech sector as a source of employment and competition. As a former member of the banking inquiry, I am acutely aware of our macro-prudential regulatory failings in the past and the flaw in the dual role of the Central Bank to regulate and promote financial services. We have moved on very substantially since then, but despite the fact that the Irish Central Bank reports to the European Central Bank, as do all others in the EU 27, we now have the worst reputation in the world in process, procedure and turnaround time. If it continues the way it is going, the Central Bank will be the only bank left in Ireland. Is it the intention that it will face the public and begin to offer retail services? The market internationally is actively avoiding dealing with Ireland. The most recent example is Revolut-----
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-----which applied for a banking licence. I will mention the point for the Taoiseach because it is important. Revolut announced yesterday that it will do some services in Ireland that will be headquartered in Lithuania.
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It applied for an Irish banking licence then withdrew it. That is 500 jobs for Lithuania, which is its gain and our loss-----
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-----because Ireland is seen as a place you cannot do business in from a banking perspective.
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I hope that the Taoiseach might take that on board and engage with the Central Bank.
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There really is no time for the Taoiseach to respond because it has been used up. I ask the Taoiseach to do his best.
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The Minister for Finance is looking at the fintech issue. A decision was taken by the Oireachtas in respect of taking competition out of the Central Bank's remit. There are issues in terms of bank competition in Ireland. We know that. There are other issues as well, but I do not have time now to go into the detail.