Government rules out law to force banks to pass on interest rate cuts
Minister of State at the Department of Finance Brian Hayes has today confirmed that the Government will not be introducing legislation which would force the banks to pass on ECB interest rate cuts.
Taoiseach Enda Kenny and Finance Minister Michael Noonan held a number of meetings with bosses at the Bank of Ireland, the AIB and Ulster Bank before Christmas in an effort to get them to pass on rate cuts to their mortgage customers.
Many refused however, prompting calls for legislation to be brought in to compel banks to pass on all future interest rate cuts.
However, Deputy Hayes said that the Government has been advised that this would go against EU rules of competition.
"The advice we would back is that wouldn't have the effect of actually doing that," he said.
"Under the existing EU rules of competition, that's unlikely to succeed."
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