Kieran O'Donnell (Limerick City, Fine Gael) | Oireachtas source

Based on those elements, the other main banks that presented to us, particularly Bank of Ireland and Ulster Bank, should be dropping their rates in line with AIB's. Ulster Bank and Bank of Ireland have higher net margins. As I have stated previously, there is a lack of competition in the Republic of Ireland market.

The variable rate that AIB charges in the North is more or less the same as its standard rate. Where loan-to-value, LTV, ratios fall below 60%, however, the variable rate charged is significantly less than it is in the Republic. This is the one consistent trend across the banks. Why is this the case for AIB? It seems simple - there is competition in the market in the North. It seems clear from our meetings with the banks that there is more than a possibility that they are exploiting and ripping Irish customers off, given the fact that the average cost of borrowing for mortgages across Europe is significantly less. There is an onus on the banks and the Governor of the Central Bank to deal with this issue now and ensure proper competition in the market. Will Mr. Duffy answer my question on the Republic versus the North?