Liam Twomey (Wexford, Fine Gael)
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Question 78: To ask the Minister for Finance the average interest that the guaranteed banks pay on money they lend on mortgages here; the way this compares with the interest paid by mortgage holders in the same institutions; and if he will make a statement on the matter. [34929/11]

Liam Twomey (Wexford, Fine Gael)
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Question 79: To ask the Minister for Finance the average interest that the guaranteed banks charge on money they lend for commercial loans; the average interest rate charged to the banks to borrow this money; and if he will make a statement on the matter. [34930/11]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 78 and 79 together.

None of the guaranteed banks publically discloses the average interest charged by product type as it is commercially sensitive information. However, I have set out in the following table publically available information from the three major covered banks' recent results which indicate the net interest margin being generated. Net interest margin is a measure of the difference between the interest income generated by and the amount of interest paid out on funding, relative to the amount of their assets.

Interest income is influenced by the mix of loan books they hold with a wide range of interest rates charged depending on product type. Interest costs arise from a variety of funding sources including deposits, funding from authorities, inter-bank funding and various wholesale funding sources including repos, securitisations, covered bonds, mortgage backed securities etc.