ISME calls for 'third banking force'
ISME has called on the Government to speed up the process of introducing a 'third banking force' after the announcement by Bank of Scotland (Ireland) to close its Halifax branches.
The Irish Small & Medium Enterprises Association outlined that this would have a negative impact on competition and the price of banking.
ISME Chief Executive, Mark Fielding, said: "The withdrawal of Halifax from the retail banking sector is an ominous warning that other foreign-owned banks may follow suit, reducing both retail and commercial lending, impacting negatively on the already meagre competition in the marketplace.
"This will exacerbate the situation for hard-pressed SMEs who are already finding it impossible to access badly needed finance and will have a disastrous impact on the individual companies and the overall economy."
"We urgently require a ‘third banking force’, which could include Bank of Scotland Ireland and Permanent TSB, to effectively compete with the ‘big two banks’.
"Failure to do so will only result in continuing cartel-like pricing of credit and reduced lending, to the detriment of all bank customers."
