The risks of hefty wage increases tipping the economy into a new crisis have risen significantly and will require the Government to keep monitoring the threat each and every quarter, outgoing Central Bank governor Philip Lane has warned.
Consumer and financial experts have called on regulators to probe the grip held by AIB and Bank of Ireland on the banking market. The calls come after ECB head Mario Draghi told the Oireachtas Finance Committee on Thursday that a “quasi-monopoly” was driving up the costs of credit for homes and business borrowers.
Central Bank governor Philip Lane has proposed that the Government back a revamped Special Savings Incentive Account (SSIA) scheme, more than 17 years after former finance minister Charlie McCreevy presided over a widely criticised €16bn scheme to encourage savers to set aside money on a regular basis.
If there is any further dragging of heels by the banks, he must exercise the full range of powers at his disposal — and demand more from Donohoe if necessary, writes
The Government will ruthlessly pursue banks for their failures to address the tracker mortgage scandal and may increase the bank levy, create new taxes or ask the gardaí to become involved if necessary, says Education Minister Richard Bruton.