The clearing of abandoned debts and the maintenance of the recovery of the financial crisis are prerequisites for the entry of new lenders into the Irish market, said Governor of the central bank of Ireland, Philip Lane.
He spoke at an event at the Dublin Chamber of Commerce this morning, Mr Lane said that the disaster led to the release of many banks from our market.
"The fragmentation of the European financial system will deteriorate if greater progress is made in developing a banking union and an association of capital markets in Europe," he said.
His remarks follow the remarks made by Mario Draghi, President of the European Central Bank, at the Oireachtas Finance Committee on Thursday.
Mr Draghi said that the actual monopoly on the banking market here is the reason for mortgage costs double the level elsewhere.
"The big limitation is the presence of a monopoly," he said. "The answer is (more) competition."
The market is currently dominated by AIB and Bank of Ireland, which oversees 60 percent of new mortgage loans.
At today's morning event, Mr Lane said he plans to oppress financial companies that pose potential risks to consumers.
In his view, the Bank's plan will include "more intrusive and targeted assessments of those companies and products that represent the greatest possible harm to consumers, [and] a greater emphasis on the corporate culture and the individual responsibility of the people who run the businesses we manage. "
"These measures are designed to incorporate high standards of conduct in order to ensure fair results for consumers and will be strengthened with the commitment to take enforcement action if these standards are not met," he said.
Striking is part of the new strategic plan of the bank, which started today.
The plan identifies five priorities: increasing resilience; Brexit; strengthening consumer protection; integration and influence; and improving organizational capacity.
Mr Lane discussed the importance of a "successful" entrepreneurial sector for the economic success of the country at the event.
Read more: ECB Draghi blames the Irish monopoly for high mortgage costs
"Decisions on employment, investment and innovation carried out by more than two hundred thousand private sector companies active in Ireland are crucial in determining national economic performance," he said.
"In addition, corporate behavior has a wider impact in achieving progress in meeting social, environmental and regional goals in the country."
He noted that while the Irish economy is in the expansion stage, it is volatile and open to the effects of potential Brexit scenarios, changes in international trade or domestic policies.
Loans from new banks to small and medium-sized enterprises outside financial and non-financial sectors increased from EUR 1.9 billion in 2013 to EUR 3.7 billion in 2017
Mr Lane said that "while the availability and volume of SME financing has improved over the past five years, the cost of bank loans for smaller firms in Ireland remains high in comparison to peers elsewhere in the euro area."
"In this context, it is important to recognize the high levels of concentration on the loan market for SME loans: the share of the three largest banks in new loans for SMEs in the first quarter of this year was 93%," he said.
Mr Lane said that, according to Brexit, Irish business was damaged and said that he wanted the government to implement more ambitious excessive targets.
Additional reporting Bloomberg