Higher banking charges warning

Dublin: The Oireachtas European Scrutiny Committee has warned of the potential for higher banking charges for consumers in the wake of new EU rules enforcing financial institutions to reach a level of keeping €3bn on deposit — or 1.5% of eligible deposits — by 2020 (currently Irish banks keep 0.2% of all deposits in the deposit protection account, equating to €600m).

“The Committee fully supports the concept that investors and depositors will receive greater protection under these new proposals.

They will also help to ensure that adequate funding should be readily available to make sure consumers are protected. Nevertheless, the Committee has some concerns that the burden of the requirement for banks to significantly increase the amount of deposits they must ring fence may fall on the taxpayer by way of higher charges and reduced deposit rates,” said committee chairman Tom Sheahan.