Business reps slam banking report
ISME, the Independent Business Organisation, has criticised the details contained in the Competition Authority report on the banking sector.
It says the document barely scratches the surface in addressing the issues that impact negatively on small business due to the lack of competition in the Irish banking sector.
ISME chief executive Mark Fielding said the study identifies that SMEs suffer disproportionately in comparison to big business when it comes to lending rates and that barriers to entry and switching costs further inhibit competition.
However, he said it patently fails to introduce the adequate recommendations to ensure a comprehensive competitive banking environment to the benefit of all, including the small business community.
"In comparison to the Cruickshank report and the report by the Monopolies Commission in the UK, which undertook a comprehensive study into the provision of Banking services to SMEs, today's study is disappointing and does not go far enough in revealing the extent of coordinated behaviour by the main Irish Banks, so clearly evidenced by consistent and sustained overcharging of small business customers," said Mr Fielding.
Meanwhile, the director of the Small Firms Association Pat Delaney has said that the report rightly highlights the need for greater competition in the provision of working capital for small business, but fails to come up with any answers as to how the situation might be remedied.
"Today's report of the Competition Authority should have had a seminal effect, but in reality it raises the question - 'How much authority does the Competition Authority have?' Small businesses have been waiting 13 months to be told what they already know," said Mr Delaney.
