Noonan explores idea of a new bank

A significant new bank with a big balance sheet could drive competition in the diminished lending sector, Finance Minister Michael Noonan said at the weekend.

The banking crisis, which helped push the country into the bailout, led to the closure or merger of half of banks and the exit of a slew of foreign lenders.

It has also left the country with only three SME lenders of scale, AIB, Royal Bank of Scotland’s Ulster Bank, and Bank of Ireland, which counts the State as a 14% shareholder.