Dáil Éireann Debate, Wednesday - 15 January 2014
104. Deputy Peter Mathews asked the Minister for Finance the reasons the European Central Bank reduced interest rates were not passed on to the variable mortgage holders; and if he will make a statement on the matter. [55204/13]
View answerI, as Minister for Finance, have no statutory role in relation to the mortgage interest rates charged by regulated financial institutions. It is a commercial matter for the banks concerned.
The mortgage interest rates that financial institutions operating in Ireland charge to customers are determined as a result of a commercial decision by the institutions concerned. This interest rate is determined taking into account a broad range of factors, including European Central Bank base rates, deposit rates, market funding costs, the competitive environment and an institution’s overall funding.
