Ciarán Lynch (Cork South Central, Labour)
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Question 71: To ask the Minister for Finance if he intends to influence the setting of the variable interest rate charged by State-owned financial institutions on mortgage repayments to avoid the considerably higher repayments required of Permanent TSB customers over those of AIB; and if he will make a statement on the matter. [2721/12]

Michael Noonan (Limerick City, Fine Gael)
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The lending institutions in Ireland, including those in which the State has a significant shareholding, are independent commercial entities. Ultimately the pricing of financial products, including standard variable mortgage interest rates, is a commercial decision for the management team and board of each lending institution, having due regard to their customers and the impact on profitability, particularly where the cost of funding to each lending institution, including deposit pricing, is under pressure.

Neither the Central Bank nor I have responsibility for any variation in the variable mortgage interest rates charged by the two institutions. However the Central Bank has advised me that, within its existing powers, it will continue to engage with specific lenders which appear to have standard variable rates set disproportionate to their cost of funds.