Most of the barriers to integration in the service sector appear to be due to national regulations, for example administrative procedures for setting up subsidiaries in other euro area countries. Regulatory barriers along these lines reduce competition in services, thus keeping prices above the level that would be expected in a fully integrated market.
The Irish authorities have taken decisive steps to strengthen the banking system through rigorous, conservative and independent assessments of loan losses, involving recapitalisation actions and targeted reduction of non-core assets. Efforts have also been made to improve regulation. In the Central Bank we see improved standards of governance and fitness and probity across financial services in Ireland as a priority.