Finian McGrath (Dublin North Central, Independent)
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To ask the Minister for Finance in view of the fact that Allied Irish Bank is State owed, his views on whether AIB is justified in putting up their interest rates to such an extent that it is going to put more pressure on the average household; and if he will insist that due to the low interest rate from the ECB that they keep their current interest rates. [43253/12]

Michael Noonan (Limerick City, Fine Gael)
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The Deputy will be aware that the Bank’s policy in relation to interest rates is a matter for the management and board of the institution. I have no role in the day-to-day commercial and operational decisions of the banks, which include these matters. These decisions are taken by the board and management of the institution. Notwithstanding the fact that the State is a significant shareholder in the institution, 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. In terms of troubled mortgage customers, the Central Bank is now engaging with all regulated mortgage lenders to ensure that each lender has appropriate strategies and plans to deal appropriately with all its customers experiencing mortgage difficulties. In addition, the protections of the Central Bank’s Code of Conduct on Mortgage Arrears will continue to be available to co-operating borrowers who are experiencing difficulty on their mortgage in respect of their principal private residence.