European Commission says retail banking in many member states including Ireland is lacking genuine competition

By Finfacts Team
A European Commission report has found that retail banking in many member states, including Ireland, is still lacking genuine competition.

The Commission's final report of its competition inquiry into the retail banking sector, published today, shows that there are a number of competition issues in the markets for credit cards, payment systems and retail banking products.

The report says the rules in the Irish market are still obstructing foreign banks who wish to break into the market and that credit card charges may be higher than they should be.

Competition Commissioner Neelie Kroes said: “The inquiry has found widespread competition barriers which unnecessarily raise the cost of retail banking services for European firms and consumers. The Commission will make full use of its powers under competition law to tackle these barriers, in the market for payment cards and elsewhere when they result from anticompetitive behaviour.”