Peter Mathews (Dublin South, Fine Gael)
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Question 124: To ask the Minister for Finance if financial institutions are obliged to lower the interest on a mortgage (details supplied); and if he will make a statement on the matter. [31145/11]

Michael Noonan (Limerick City, Fine Gael)
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As Minister for Finance, I do not get involved in or comment on negotiations/discussions between a borrower with his/her lender. I note that the borrower in question is engaging with the lender. As the Deputy is aware the Central Bank's Code of Conduct on Mortgage Arrears (the Code) applies to mortgage lending activities with borrowers in respect of their principal private residence in the State. Under the Code, lenders must establish a Mortgage Arrears Resolution Process known as a MARP and use this framework when dealing with borrowers who are in arrears or in pre-arrears situations. Under rule16 of the Code, a lender must establish a dedicated Arrears Support Unit (ASU) to manage cases under the MARP. If a borrower is not satisfied with a decision of the ASU, then he or she can appeal the matter to the lender's internal appeals board which the lender is obliged to establish under rule 42 of the Code. A copy of the Code is available on the Central Bank's website: www.centralbank.ie.

Luke Flanagan (Roscommon-South Leitrim, Independent)
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Question 125: To ask the Minister for Finance his views that it is unfair for lending institutions to raise variable mortgage rates in order to offset losses on tracker mortgages; and if he will make a statement on the matter. [31152/11]

Brendan Griffin (Kerry South, Fine Gael)
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Question 130: To ask the Minister for Finance his views on a matter (details supplied); the steps he will take in this situation; and if he will make a statement on the matter. [31178/11]

Michael Healy-Rae (Kerry South, Independent)
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Question 134: To ask the Minister for Finance if he will review a matter (details supplied) regarding interest rates; and if he will make a statement on the matter. [31271/11]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 125, 130 and 134 together.

As Minister for Finance, I have no statutory role in the setting of interest rates charged by financial institutions regulated by the Central Bank.

The Central Bank has responsibility for the regulation and supervision of financial institutions in terms of consumer protection and prudential requirements and for ensuring ongoing compliance with applicable statutory obligations. Interest rates and financial products are not regulated. Each institution determines the rate it charges its customers, depending on a number of factors, such as cost of funds and commercial considerations (such as competition in the market, risk pricing and the impact on deposit rates).

Despite the Central Bank not having a statutory role in the matter, I have been advised by the Bank that a decision has been taken to require any bank that has received Government capital support to provide an impact analysis of any proposed standard variable mortgage rate increase in terms of the implications for its arrears portfolio and for future capital requirements. The Central Bank has also indicated that the Board of Directors of such a bank must, in future, review and approve this analysis to ensure that proper attention is given to the costs of such actions The Deputies may wish to refer to the address given by Mr Matthew Elderfield, Deputy Governor of the Central Bank to the Association of Compliance Officers in Ireland at University College Cork on 14 October 2011. This can be accessed on the Central Bank's website www.centralbank.ie.

The Financial Services Ombudsman is a statutory officer who deals independently with complaints from consumers about their individual dealings with financial service providers that have not been resolved by the providers after they have been through the internal complaints resolution systems of the providers. Because of the independence of the Ombudsman, it would not be appropriate for me to comment on his work or on how long it takes him to carry out his investigations.