Shrinking of banking sector 'may hamper' consumer rights

The head of the European Banking Authority has admitted that the shrinking in size of Ireland's banking sector may lead to anti-competitive practices.

While the banking sector across Europe has diminshed in size accross the board, Ireland has just two pillar banks which experts say "may hamper" competition for consumers.

Adam Farkas, the newly appointed Executive Director of the European Banking Authority, said that competition authorities should be alert to this possibility.

Mr Farkas said: "I think it's a legitimate concern across the markets. If sufficient competition is not ensured then consumer rights might suffer.

"The relevant European competition authorities, as well as the national authorities for competition, should be alert to that one."