Terence Flanagan (Dublin North East, Fine Gael)
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Question 68: To ask the Minister for Finance the powers he has to ensure that the ECB interest rate cut is passed on by all banks that operate here; his plans to legislate for this; and if he will make a statement on the matter. [33669/11]

Michael Noonan (Limerick City, Fine Gael)
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As Minister for Finance, I have no statutory role in the setting of interest rates charged by financial institutions regulated by the Central Bank. While I have no plans to introduce legislation to force lending institutions to reduce their variable mortgage rates, the matter will be kept under review in the context of decreases/increases announced by the ECB.

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. Each institution determines the rate it charges its customers, depending on a number of factors, such as cost of funds and commercial considerations, competition in the market, risk pricing, and the impact on deposit rates.

If the Central Bank and theFinancial Regulator require additional legislative measures to enable them to carry out their activities more efficiently, I will consider their request with a view to bringing proposals to Government.