Brendan Burgess
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From today's Indo
ESRI questions Noonan move to force banks into variable rate cut
But Prof McQuinn said the Government's involvement in the banking sector might put off some foreign banks from entering the Irish market.
"If you want greater competition in the domestic banking sector, if you want possibly new entrants coming into the market, you have to think that they're not going to be encouraged by that kind of intervention in the market," he said.
"In the short run, you may get the banks to bring down their SVRs (standard variable rates) and that's very welcome for mortgage holders, but in the longer course of action, does it act as a deterrent for potential new entrants?"
ESRI questions Noonan move to force banks into variable rate cut
But Prof McQuinn said the Government's involvement in the banking sector might put off some foreign banks from entering the Irish market.
"If you want greater competition in the domestic banking sector, if you want possibly new entrants coming into the market, you have to think that they're not going to be encouraged by that kind of intervention in the market," he said.
"In the short run, you may get the banks to bring down their SVRs (standard variable rates) and that's very welcome for mortgage holders, but in the longer course of action, does it act as a deterrent for potential new entrants?"