Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

In regard to the impact of the banks dealing with non-performing loans and how they would pass that on to their customers via rate reductions, so many variables would come into play that I am not in a position to answer. There are more non-performing loans in the Irish economy and our banks than is the case in other countries with which we would compare ourselves. The improvement of the balance sheets of our banks, due to the impacts of economic growth and non-performing loans being carefully dealt with, should have an effect on interest rates offered to new and existing customers. However, at that point other things will come into play. For example, the level of competition in the banking sector at that point will be a factor. Towards the end of last year, there were renewed signs of competition in the interest rates offered to new customers. That is a positive development in helping people buy their own homes, but we and the banks have much work to do in this area.