The Department of Finance yesterday published an independent report on Community Banking in Ireland concluding there is no business case for the State to establish a public banking system in Ireland.
Whilst the report flagged some areas of market failure, it noted there is extensive provision of banking services in Ireland as well as a wide range of Exchequer-funded existing supports.
Furthermore, the report suggests credit unions are considered to be increasing their financial product offerings to members, as well as An Post, playing into the community banking sphere. The paper and its conclusions support the outcome of a previous report on the issue published by the Department in 2018.
According to Goodbody Stockbrokers, "The independent report provides some useful background data on bank branch network coverage on a regional basis by population and by SME distribution as well as an analysis of the credit union and An Post networks. However, we would concur with the conclusions and note that ongoing digitisation of financial services and widening of offerings by the likes of the credit unions will continue to diminish the need for direct provision of community financial services by the State."