Dinny McGinley (Donegal South West, Fine Gael)
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Question 76: To ask the Minister for Finance if he is monitoring charges made to bank customers over inter-bank rates set by the European Central Bank; and if he will make a statement on the matter. [19070/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The decision on pass through of ECB rate reductions to variable rate mortgages 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.