Dáil Éireann Debate, Tuesday - 19 May 2015
118. Deputy Brendan Griffin asked the Minister for Finance his views on correspondence (details supplied) regarding the high standard variable rates of mortgages; and if he will make a statement on the matter. [19300/15]
View answerThe lending institutions in Ireland - including those in which the State has a significant shareholding - are independent commercial entities. The setting of interest rates is a commercial decision for the institutions concerned. Nonetheless, the issue of regulation of interest rates remains a policy area under active review.
Competition between the banks will be crucial in ensuring that the price that the customers have to pay moves in the right direction. The banks must be convinced that customers will switch to other banks unless they reduce their Standard Variable Rates (SVRs).
I met with the Governor of the Central Bank on 2 April and SVRs were discussed. On foot of this, the Governor undertook to review the issue of the standard variable rates charged by the lenders.
The Department of Finance have now received the Central Bank's report on the influences on Standard Variable Mortgage pricing in Ireland.
I will meet with the six main banks this week to discuss the issue of SVRs and the Report is a valuable input in framing that discussion.
