Enda Kenny (Mayo, Fine Gael) | Oireachtas source

As I stated, the director has been appointed and the service is recruiting staff. In respect of the commentary I have seen about mortgage increases, as I indicated to the Deputy previously, we wrote to the Financial Regulator at the Central Bank asking if it wishes to have more authority and powers to deal with banks. If the Government receives such a request, it will be considered.

In respect of claims that the banks will increase interest rates for mortgage holders and consumers, it would be in the interest of the banks to focus on their cost base rather than consumers. While the Government does not interfere directly in the banks or direct that interest rates be set at a certain level, it is in everyone's interests that banks are able to return to profitable business. However, they should, in the first instance, address their cost base. I have extended the powers of the Cabinet sub-committee to deal with mortgages and banks and I hope we will have new targets for them after the next meeting.

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