Bank profits and mortgage costs
Deputy Doherty attacked record bank profits and high interest rates, saying ordinary borrowers were being squeezed. The Taoiseach said the Central Bank regulates banks and argued the focus should be on cheaper finance for house building, not on rhetoric.
Today AIB announced a staggering profit of €2.8 billion. That comes a week after Bank of Ireland boasted €1.9 billion in profits. This is not the result of more productivity or innovation. It is the result of banks squeezing homeowners and short-changing savers. Financial institutions on the Government’s watch have lumped workers and families with extortionate interest rates in the middle of a cost-of-living crisis. Ireland, if the Taoiseach does not know, has among the highest interest rates in the European Union. This has been going on for years. Just like with insurance companies and energy companies, the Government is standing idly by while banks are taking advantage of workers and families.
I will ask the Taoiseach three questions. Does he agree these profits have been made off the backs of ordinary workers and families? What will he do to bring an end to this and hold banks to account? Will he make sure banks pass on the benefit to customers instead of announcing bumper profits at their expense?
Comment on this
The economy has been extremely strong in recent years. That has helped the profitability of many companies, including banks. By the way, the Central Bank governs the supervision of banks, as the Deputy knows. However, I do believe that in the next while we should focus on finance available to building and house building in particular, that both the cost of that finance would be reduced and that the banks would engage much more on the single greatest priority facing this country, which is housing. That is where my focus is on engagement.
Comment on this
So reduce for builders and screw the homeowners? Is that what it is?
Comment on this
No. There have been huge mortgage drawdowns for first-time buyers in recent years and banks benefit from that, but we need more housing. If you talk to anyone about house building the cost of finance is a big inhibitor. It is a big problem. We need to look at the cost of finance to get to 50,000. I am interested in solutions not sloganeering or politicking and so on.
Comment on this
No, I am asking about mortgages. The Taoiseach is talking about builders.