There has been no change in Government policy to create a third force in banking. The objective of this policy is to increase competition in the banking sector while protecting — and enhancing to the extent possible — the developmental role which the State banks can play in fostering industry, especially small and medium sized industry. Proposals to give effect to this policy have not yet come before Government. The Government will consider the matter when I am in a position to present firm proposals. No Government working party, or official working party of any kind, has to date been established in connection with Government policy in relation to the State banks. No working party report has, accordingly, been prepared.
The Deputy will be aware from my reply to a related question on 12 October last that I and my Department have been engaged in extensive consultations with relevant parties and in a comprehensive survey of the options available to give effect to the programme commitment to the creation of a third force in banking. Considerable progress has been made in clarifying and teasing out the steps that will have to be taken in order to achieve the desired objective. This preparatory work is continuing.
The issues involved in this question are many and complex. Any decision has implications, not just for the institutions immediately involved but also for the wider financial system. I am, therefore, determined to take the necessary time to fully explore all the options and only when I have done that will I be in a position to put firm proposals to Government.