George Lee
Question:239 Deputy George Lee asked the Minister for Finance the reason Anglo Irish Bank is offering the highest rate of interest on deposits of all banks; and if he will make a statement on the matter. [37269/09]
View answerTuesday, 20 October 2009
Questions (151)
Written answers
As the Deputy is aware, Anglo Irish Bank is being run on an arm's length commercial basis by the Board of Anglo. Consequently, normal commercial decisions, which include those related to interest rate policy and the management of the funding of the bank, are a matter for the Board of Anglo.
Anglo has confirmed that the bank offers a competitive interest rate on a range of deposit products, but that it currently offers a leading market rate on only one of these. Also, comparisons with the deposit interest rates offered by different financial institutions need to recognise the different terms and conditions that apply to the accounts.
Anglo regularly reviews the interest rate on its deposit products, including with regard to positioning relative to competitor offerings. As with all financial institutions, Anglo's commercial decisions on its deposit interest rates are influenced by a number of factors including money market interest rate movements, competitor actions, and by the bank's strategy with regard to its overall mix of funding sources.