Leo Varadkar (Dublin West, Fine Gael)
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Question 173: To ask the Minister for Finance the actions he is taking to pressurise the covered financial institutions to pass on reductions in the Euribor rate to business; and if he will make a statement on the matter. [10971/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The decision on whether a bank operating in Ireland passes on interest rate cuts to customers is a commercial decision for the individual bank concerned. While my Department monitors the impact of changes in interest rates on the Consumer Price Index (CPI), it has no direct function in relation to the individual bank decisions on the matter.

However, as the Deputy will be aware, I have publicly indicated that I expect banks to pass on funding cost reductions to their customers, including in particular to small and medium-sized enterprises. This is important to help support sustainable growth and employment along with the maintenance of price stability.