Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

It is also an issue for SMEs which are borrowing and paying very high rates in Ireland. There are banks in Ireland that can still charge four to six times their cost of funds by way of the interest rate they charge. Other factors feed into the pricing mix, such as cost of capital. Inevitably, the ECB will eventually raise interest rates at some point in the economic cycle. Tracker customers will incur an increase at that point, but from a very low base. Again, variable rate customers will be the first to really feel it. This would be acceptable if variable rates came down in line with the financial and market environment the banks are enjoying.

Private equity funds - so-called vulture funds - which bought mortgages own approximately 10,000 principal dwelling house, PDH, mortgages. We discussed regulation earlier. Private equity funds which are not concerned about their reputations in Ireland could decide tomorrow morning that they will double their customers' interest rates, and the Central Bank has no power to do anything about it. This must be dealt with, as well as the general issue of pricing of mortgages in Ireland.