31 Oct 2013
DANSKE ANNOUNCEMENT PLACES ONUS ON GOVERNMENT TO KEEP REMAINING BANKS HONESTEconomics
IFA President John Bryan said the decision by Danske bank to end its operations here is another blow for competition in the banking sector, and places an onus on the Government to keep the remaining banks honest.
John Bryan said, “Following on from the announcement by ACC last week, this move by Danske reduces further the options open to farmers, SMEs and consumers who need competitive banking facilities to run their businesses”.
He said, “The Government and Financial Regulator have a responsibility to increase the oversight of the banks remaining in the market and, if necessary, introduce price controls on the interest and credit charges they impose on their customers so they do not exploit this situation by increasing the cost of loans and banking facilities”.
The IFA President said keeping the cost of credit at competitive levels will be very important for the economy, and especially for the agricultural sector, as it looks to expand as part of the Food Harvest 2020 plans.