Brian Stanley (Laois-Offaly, Sinn Fein)
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To ask the Minister for Finance the meetings he or his officials has had; the correspondence he or his officials have had; the action he or his officials have taken in the past two months with respect to those banks that are either refusing to pass on European Central Bank interest rate reductions to their variable rate mortgage holders or increasing the rate on these mortgages holders; and if he will make a statement on the matter. [50238/12]

Michael Noonan (Limerick City, Fine Gael)
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During the past two months, neither I nor my officials have had meetings or correspondence with banks regarding the European Central Bank interest rate reductions or increases in the rates applied to mortgage holders by lending institutions. I have no statutory role in relation to the issues raised by the Deputy. It is a commercial matter for each bank concerned. The Central Bank has responsibility for the regulation and supervision of financial institutions in terms of consumer protection and prudential requirements and for ensuring ongoing compliance with applicable statutory obligations. However, the Central Bank has no statutory role in the setting of interest rates charged by regulated entities apart from the interest rate cap imposed on the credit union sector in accordance with the provisions of the Credit Union Act, 1997.

The lending institutions in Ireland are independent commercial entities. Ultimately the pricing of financial products, including, interest rates and products 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.

Notwithstanding the fact that the State is a significant shareholder in some banks, it is imperative that the banks are run on a commercial, cost effective and independent basis to ensure the value of the banks as an asset to the State.