Written answers

Tuesday, 15 November 2011

Department of Finance

Financial Services Regulation

9:00 pm

Photo of Pearse DohertyPearse Doherty (Donegal South West, Sinn Fein)
Link to this: Individually | In context

Question 42: To ask the Minister for Finance if he is preparing legislation to force mortgage lenders to pass on ECB interest rate reductions to mortgage holders; if so, when the legislation will be published and brought before Dáil Éireann; and if he will make a statement on the matter. [34429/11]

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

I have no plans to introduce legislation to force mortgage lenders to pass on European Central Bank interest rate cuts to their standard variable rate mortgage customers. As the Deputy is aware, the Deputy Governor of the Central Bank wrote to the Taoiseach on 11 November 2011 setting out the Central Bank's opinion on recent developments in mortgage interest rates and on possible action by the Bank in this regard. In my reply to the priority question from the Deputy, I outlined the details contained in that letter. In short, the Deputy Governor has stated that the power to exercise regulatory control over retail interest rates is not sought by the Central Bank at this time.

If the Deputy Governor requires additional legislative measures to enable him to carry out his functions more efficiently, I will consider the request with a view to bringing proposals to Government. The question of how interest rates paid on deposits should be treated will also have to be considered in this context.

Comments

No comments

Log in or join to post a public comment.