Bank demands banking laws overhaul

RESERVATIONS about major reform of the Irish retail banking industry have been expressed again by Bank of Scotland Ireland (BOSI).

In a submission to the Competition Authority, BOSI chief executive Mark Duffy highlighted the major barriers to competition.

These included the difficulty in getting access to the money transmission system through Irish Payment Services Organisation (IPSO), the problems of switching accounts and the lack of transparency in pricing.

"We maintain an independent process, outside the control of the banks, is required to correct these inequalities and introduce real competition to Irish banking," said Mr Duffy.

"We welcome the investigation by the Competition Authority. The banking market is rife with anti- competitive practice. BOSI is calling for urgent reviews in the industry," he said.

"The players in the Irish market have done nothing to stimulate competitiveness particularly in current accounts and overdrafts.

"Whatever the motivation, it is clearly time to put the status quo to rest," he said.

The BOSI submission highlights three further issues it says the competition study needs to address.

Double standards: HBOS and other banks including Irish retail banks operating in Britain, co-operated successfully to abolish anti-competitive practices in banking.

"It is outrageous the Irish banks refuse to offer their Irish customers the same benefits," he said.

Expansion BOSI says it is keen to increase its product offering in the Irish market, and would do so if there were a level playing field.

Passporting BOSI urges legislation on 'passporting', a method of moving security from one financial institution to another. Mortgages would become more portable, allowing borrowers to switch for the best deal.