Cathal Crowe (Clare, Fianna Fail)
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213. To ask the Minister for Finance if he will investigate the reason that banks and other financial institutions in Ireland have not paid any interest on deposit accounts to customers relating to the rising interest rates on bank loans (details supplied); and if he will make a statement on the matter. [61460/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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The formulation and implementation of monetary policy is an independent matter for the European Central Bank (ECB). The recent rise in inflationary pressures, driven largely by energy prices, is not only a feature of the Irish economy but is one that has become evident across most advanced economies, with euro area inflation reaching a record 10.7 per cent in October. It is in this context that the process of monetary policy tightening in the euro area - and around the world - is underway. The interest rate on the ECB deposit facility has increased recently from record low (negative) levels and is now at 1.5%. 

Neither the Central Bank of Ireland nor I have a role in prescribing or setting the interest rates offered by banks. These are commercial matters and are the sole responsibility of the board and management of the banks, which must be run on an independent and commercial basis.

Although the State is a shareholder in some of the banks operating in the State, they must be run on a commercial and independent basis, and their independence in this regard is protected by the framework relationship agreements.

The importance of encouraging competition in the retail banking sector was one of the factors which motivated me to launch a review of the retail banking sector this time last year. Last Tuesday (29 November), Minster Fleming and I published the Report of that Retail Banking Review. Chapter 5 of the Report, in particular, makes a number of recommendations to enhance competition in the market and I look forward to seeing these recommendations implemented. 

The Deputy may also wish to note that the Competition and Consumer Protection Commission's (CCPC) website includes a number of comparison tools to help consumers shop around. These tools can be used to compare the features and rates of both lump sum deposit products and regular savings accounts.