Vol. 531 No. 1
82 Mr. Allen asked the Minister for Finance his views on credit card company figures which show that the level of customer debt has risen by £200 million in the past two years from £400 million to more than £650 million; and if he will make a statement on the matter. [5014/01]
Monitoring of the growth of private sector credit in Ireland and prudential supervision of credit institutions in general is a matter for the Central Bank. The Central Bank as part of its monitoring and prudential supervision is cognisant of the risks posed by rapid credit growth in general and has been active in alerting banks to these risks. In this regard, the Governor of the Central Bank has written to the lending institutions on several occasions reiterating the need for prudence in lending practices.
As regards credit card debt, the level of outstanding indebtedness is about 1% of overall outstanding private sector credit. The rate of growth in credit card indebtedness last October was broadly in line with the rate of growth in total private sector credit at that time. I am aware that many customers clear their accounts on a monthly basis. For those who do not clear them, the interest costs are high and customers should consider more cost effective alternatives.
