Bernard Durkan (Kildare North, Fine Gael)
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Question 150: To ask the Minister for Finance if his attention has been drawn to the interest rates currently being charged by lending agencies in respect of house improvement or similar loans; the extent to which this is in excess of the interest paid to depositors; if his attention has been further drawn to the need to bring margins into line with the economic climate; and if he will make a statement on the matter. [19283/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The decision on the interest rate to be charged by a lending institution for house improvement or similar loans is a commercial decision for the financial institution concerned. This decision will reflect a range of different factors including funding costs, market conditions, profitability and business strategy as well as the competitive environment overall.

The Deputy will appreciate it is a core function of the Board and senior management of each institution to assess where the appropriate balance lies between these competing objectives particularly in ensuring the financial health and commercial viability of the relevant institution. It is not an appropriate role for the Minister for Finance to seek to determine this decision making by financial institutions operating under competitive market conditions. In view of its statutory consumer protection mandate, the Financial Regulator will continue to monitor interest rates charged by financial institutions.