asked the Minister for Finance what control the Central Bank has over lending by private banks in the private sector.
Ceisteanna—Questions. Oral Answers. - Control of Bank Lending.
24.
Since 1965 letters conveying advice to the Associated Banks on credit policy have been issued by the Central Bank from time to time. In these letters the Associated Banks have been requested to bear in mind the requirements of the private sector of the economy and to give priority to applications for credit for productive purposes and particularly for exports. In exercising this function the Central Bank relies on the co-operation of these Banks, with which it has frequent consultations.
While it relies on the co-operation of the banks, would the Central Bank have any further control over the amount available to the private sector other than that?
On which side is the Deputy—that of the public or the private sector?
I am on the side of money being available for priorities and not indiscriminately making money available just for the purpose of earning interest. I should hope that the Central Bank would have——
The Deputy may not make a speech on the question.
The Minister asked me a question and I was endeavouring to answer him.
There is no need to answer.
I should hope the Central Bank would have some control over priorities.
(Interruptions.)
We are very sensible mature people and between myself, the Central Bank and the Associated Banks, we work out these things in a proper way and ensure that the resources available to us are distributed to the best possible advantage.