Bank review - Consumers should have more choice

The Competition Authority initiated a review last year of competition in Irish banking. Yesterday it published an interim report setting out the scope of its review, which will look at personal accounts and loans to small businesses. A full report will be drawn up by the middle of next year.

In the area of personal business, one of the issues will be whether banks should pay interest on money in current accounts. A couple of years ago, the British Competition Authority, which has more extensive powers than its Irish counterpart, compelled British banks to pay interest on current accounts at a specified rate.

Anticipating the Competition Authority’s interim report, the Irish Small and Medium Enterprise Association (ISME) issued a statement accusing the banks of ripping off business customers by charging them twice as much as other EU countries.