Tuesday, 17 July 2012

Questions (100)

Martin Heydon


104 Deputy Martin Heydon asked the Minister for Finance the steps he is taking to try and ensure that the recent reduction in ECB lending rates is passed on to Irish consumers by the Irish banks as was the intention of the ECB; and if he will make a statement on the matter. [34706/12]

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Written answers (Question to Minister for Finance)

The lending institutions in Ireland are independent commercial entities. 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. Neither the Central Bank nor I have any responsibility for the variable mortgage interest rate charged by the financial institutions. I have no powers to compel the institutions to reduce their rates.