Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Question 99: To ask the Minister for Finance if he will make a statement on the recent announcement by a bank (details supplied) that it has increased the interest rates it charges on some personal loans and overdrafts; and if his attention has been drawn to the strain that this increase in charges will have on struggling families. [11449/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The increase in the interest rates on some personal loans and overdrafts reflects the commercial market realities which the bank faces. Basically, the bank must pay more to access the funds which it uses to operate. Although the ECB base rate remains at historic lows, the level of interest rates also depends on a broad range of factors including deposit rates, market funding costs, the competitive environment, an institution's overall funding.

With regard to the impact on Irish families of these changes, it is self evident that any increase in interest rates will have a negative impact on the disposable income of households. The Government has through a number of measures, including the Mortgage Interest Subsidy Scheme and the moratorium on home repossessions, sought to ease the burden of the recession for the most vulnerable members of Irish society. However, I do not have any function in the day to day running of the recapitalised banks and have no role in setting interest rates.