The Competition Authority’s report (published September 2005) made 25 recommendations designed to ensure that competition between banks works for the benefit of personal current account holders and small businesses. The report also focused on the crucial role of the Payments Clearing System. Considerable progress has been made in implementing our recommendations.
 
Competition in these areas has brought benefits to consumers and small businesses, for example through lower bank charges, longer opening hours and online banking.

Personal Current Accounts
 
Prior to our report, it was extremely difficult for personal current account customers to leave their existing bank and switch to another bank. As a result, banks did not work to meet the needs of their existing customers but instead tried only to attract new customers opening accounts for the first time.

Implementing our recommendation to introduce a switching code has made switching banks much easier for consumers and encouraged competition between banks for all personal current account customers.
 
Lending to Small Businesses

Our report showed that small businesses were not benefiting from competition, particularly in the vital area of working capital lending.  Banks were not passing on interest rate decreases to their small business lenders.  Based on our recommendations, a switching code for small businesses has been introduced; this helps small businesses shop around for working capital loans.

There are a few remaining recommendations which, if implemented, could ease the current working capital difficulties of small businesses. One important unimplemented recommendation in this area is that banks should provide customers with a free 3-year account history; this would further help customers to shop around.
 
Payments Clearing System

Since our report, the clearing organisations have greatly reduced entry barriers which were stalling entry to the Payments Clearing System, and therefore into the Irish banking market.

In order to secure EU approval for the recapitalisation of the Irish banks,  the Government has made a number of commitments to restore competition in the Irish banking market by facilitating entry and expansion of competitors and enhancing consumer protection. 
 
A list of the priority recommendations not yet implemented is given below.

Priority Unimplemented Recommendations