Finian McGrath
Question:116 Deputy Finian McGrath asked the Minister for Finance if he will respond to correspondence regarding the European Central Bank rates (details supplied). [6227/12]
View answerTuesday, 7 February 2012
Questions (67)
Written answers
The details provided by the Deputy refer to the failure of a particular lending institution to pass on ECB rate reductions. The Deputy will be aware that the lending institutions in Ireland, including those in which the State has a substantial shareholding are independent commercial entities. The lending institution mentioned by name, in the details supplied by the Deputy, is not one in which the State has a direct shareholding. Neither the Central Bank nor I have the power to compel financial institutions to reduce their mortgage interest rates.
Ultimately the pricing of financial products, including standard variable mortgage interest rates, is a commercial decision for the management team and board of each lending institution, having due regard to their customers and the impact on profitability, particularly where the cost of funding to each lending institution, including deposit pricing, is under pressure.