Peadar Tóibín (Meath West, Sinn Fein)
Link to this: Individually | In context

Question 152: To ask the Minister for Finance the steps he will take to force the banking industry to provide fixed rate loans that are not excessively inflated with large banking premiums. [21144/11]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

The Deputy will appreciate that I cannot do much to prevent the banking industry, which operates on a commercial basis and must compete for funding, from increasing the interest rates. However, as I have already stated in this House, the banks are engaging in cost cutting plans which are already underway. These cost reductions which will improve operating margins and permit the banks to better absorb any future raises in funding costs and I would expect this to be reflected in their interest rates.