ISME warns banks to pass on full rate cut
The Irish Small and Medium Enterprises Association has warned the banks to immediately pass on the full benefit of the 0.25% reduction announced today by the European Central Bank to their SME customers.
Permanent tsb bank has confirmed that it will pass on the latest ECB rate cut in full to residential home loan customers on both variable and tracker mortgages.
The association welcomed the reduction with ISME chief executive, Mark Fielding saying: "The decision by the ECB should bring badly needed relief to many smaller business borrowers. However ongoing ISME research confirms that the banks continuously refuse to pass on the full decrease in rates.
"The banks' refusal to pass on interest rates in full is jeopardizing the existence of many businesses, their own clients.
This policy based on greed and profiteering is a major threat to the economy, particularly when businesses are suffering from excessive costs in other areas.
It must be a condition of the Government’s recapitalisation that full rate reductions are passed on otherwise the exercise will do little to assist the SME sector in the economic recovery."
