Banking and financial services consultation
The SFA are seeking views and/or opinions from members to the consultation on how the concept and objectives of community banking and local provision of banking and financial services may be furthered. The purpose of the consultation is to conduct an external independent evaluation of the concept of public banking. In order to draft our submission in enough time, I would ask that you return your contribution before close of business Friday, 5 April 2019 to email@example.com.
In July 2018, the Department of Finance published a report on Local Public Banking in Ireland. While the report concludes that there is not a compelling case for the State to establish a new local public banking system, alternative means of establishing local public banks may have the potential to bring additional competition to the financial services market and the Government is committed to examining this.
Mr. Paschal Donohoe T.D., Minister for Finance and Public Expenditure and Reform, has appointed Indecon International Economic Consultants to undertake an independent evaluation of how the concept and objectives of community banking, and local provision of banking and financial services, may be furthered in Ireland.
The terms of reference
To conduct an external independent evaluation of the concept of public banking to:
- Examine whether there is a clearly defined market ‘gap’ or ‘failure’ in the local provision of banking and financial services in Ireland.
- Examine the local provision of banking and financial services, including those services offered by local public and /or community banks, operating in other jurisdictions.
- If there is an identifiable market gap or failure.
- To identify any regulatory or competition barriers to entry for the local provision of banking and financial services that could be eliminated or mitigated by the State.
- To examine and recommend possible delivery mechanisms for community, or enhancements to such existing mechanisms, by which local provision of banking and financial services and/or community banking could be implemented in Ireland:
- Through the existing financial services system in Ireland, including the Credit Union Sector and An Post;
- Through leveraging existing State infrastructure;
- Through new market entrants;
- Through an online offering or other opportunities such as Fintech; and/or
- Other options.
- Potential alternative models for the delivery of community banking and local provision of banking and financial services should be outlined based on the above examination.
- Outline and consider the likely costs associated with the provision of local and/or community banking services through any such delivery mechanisms.
- Provide potential policy recommendations:
- Any policy recommendations should take into account current and forthcoming actions already being undertaken by Government and, where relevant, other stakeholders and bodies;
- Any policy recommendations should provide an indication of their potential likely impact on Government spending, spending priorities, budget and deficit; and
- State aid and competition regime considerations should also be taken into account in any such policy recommendations.
The Small Firms Association is keen to hear from members on the terms of reference, as your views and opinions will help us draft our submission. Comments should be sent by close of business Friday, 5 April 2019 to firstname.lastname@example.org.
If you have any queries, please feel free to contact SFA Senior Executive, Elizabeth Bowen on email@example.com.