Tuesday, 21 February 2012
Department of Finance
State Banking Sector
James Bannon (Longford-Westmeath, Fine Gael)
Question 169: To ask the Minister for Finance the reason there is such a variance in mortgage rates between the State owned lending institutions, which is causing anguish and financial hardship to the borrower; and if he will make a statement on the matter. [9519/12]
Michael Noonan (Minister, Department of Finance; Limerick City, Fine Gael)
The lending institutions in Ireland, including those in which the State has a significant shareholding, 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.