Jonathan O'Brien (Cork North Central, Sinn Fein)
Link to this: Individually | In context

Question 42: To ask the Minister for Finance if he is satisfied with the situation that sees Permanent TSB, a State-owned bank, still charging a standard variable rate for mortgages which is higher than other banks' rates. [25646/12]

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

As has been stated previously, I have no role in the day-to-day commercial and operational decisions, which include these matters. Ultimately, the pricing of financial products, including standard variable mortgage interest rates, is a commercial decision for the management team and board of IL&P, having due regard to their customers and the impact on profitability. Notwithstanding the fact that the State is a significant shareholder in IL&P, I must ensure that the bank is run on a commercial, cost effective and independent basis to ensure the value of the bank as an asset to the State, as per the Memorandum on Economic and Financial Policies agreed with the EU Commission, the ECB and the IMF. Relationship Frameworks have now been specified that clearly define the nature of the relationship between me and each of the covered institutions. Those Frameworks were published on 30 March 2012 and can be found at: http://banking.finance.gov.ie/presentations-and-latest-documents/. It should be noted however that PTSB recently announced a 0.5pc reduction in its standard variable rate for residential mortgage customer effective from 14 May 2011 and it now stands at 4.69% bringing the rate more in line with those charged by other institutions in the Irish mortgage market.