Dáil Éireann Debate, Tuesday - 10 February 2026
172. Deputy Paul Lawless asked the Tánaiste and Minister for Finance his plans to increase competition in the retail banking sector following the withdrawal of several major banking institutions in recent years; the steps he is taking to ensure consumers, particularly in rural areas, have adequate access to banking services; and if he will make a statement on the matter. [10070/26]
View answerThe Retail Banking Review, which was published in November 2022, considered competition in the market.
While there had been increased concentration in the market following the exits of Ulster Bank and KBC, the review found that sufficient competition would remain in the short to medium term, subject to continued strong regulatory oversight.
Since the publication of the review, new entrants into the market have included Avant Money, an Irish branch of Bankinter, and Monzo Bank, which was recently granted a full banking licence in Ireland.
In addition, recent changes to the Credit Union Act should help to allow that sector to play a greater role in the provision of retail banking products and services.
One very important Government commitment was to engage with the Central Bank to review credit union lending limits. This work has been completed and revised lending limits are now in place.
The amending regulations commenced in September of last year, permitting the sector to advance up to €6.6 billion in house lending and €3.3 billion in business lending.
This is a significant increase from the previously permitted lending limit of €2.9 billion.
The amendment of these regulations reflects the competence and capability of credit unions to grow their respective loan books in a prudent manner, and to futureproof their offering to support homeowners and businesses.
It will also allow credit unions to compete more effectively in the mortgage and business lending market.
Following a recommendation in the Retail Banking Review, the Competition and Consumer Protection Commission and the Central Bank of Ireland entered into a revised cooperation agreement in March 2025. This enhanced coordination allows for the sharing of perspectives, information, and experience on the orderly functioning of markets, consumer protection, and competition in the retail banking sector.
On foot of further recommendations in the Retail Banking Review, legislation was enacted last year to safeguard access to cash and help prevent financial exclusion, particularly for vulnerable consumers and those with limited digital access.
Criteria have now been set to ensure that, on a regional level, the provision of ATMs and cash service points ensures sufficient and effective access to cash. A cash service point is a designated, staffed location – typically a bank branch or post office.
The criteria range by region from 96% to 99% of the population being within 10km of an ATM; from 70 to 98 ATMs per 100,000 people; and from 99% to 99.7% of the population within 10km of a cash service point.
The Central Bank is also actively engaging with key stakeholder groups in relation to the implementation of the local deficiency guidelines and requirements for ATM operators. An open public consultation process is underway and will run until 4 March. This gives members of the public and interested stakeholders the opportunity to provide their feedback on the Central Bank's proposals.
The Central Bank is responsible for monitoring compliance by designated entities with the criteria.
As the Deputy will be aware Ireland will take over the rotating EU Presidency in the second half of this year. From the outset, Ireland has been a strong supporter of the Savings and Investment Union and this it will be a key priority for me during our term of the Presidency. In doing so, we will also create more opportunities for Irish savers.
