Taoiseach Simon Harris has said he wants 'assurances' the banks would cut interest rates to match the European Central Bank's rate decline – the banks say that if they do this they will have the Competition and Consumer Protection Commission calling at their door. Photograph: Leon Farrell/RollingNews.iethat the Government does not own the banks any more.
The reality is the following. In general, the big banks have been keeping their profit margins up by offering a low return deal to savers. This has allowed them to keep their mortgage rates down as the ECB has hiked rates – apart from tracker rates, which adjust automatically. So savers have been effectively subsidising borrowers, even if this is partly their own fault for leaving spare cash in demand deposit accounts.
Government banking policy remains important, of course. A stable environment can help to encourage new entrants