Wednesday 21 November 2018

British financial institutions criticised Central Bank of Ireland

Central Bank governor Patrick Honohan
Central Bank governor Patrick Honohan
Gavin McLoughlin

Gavin McLoughlin

The Irish ambassador to Britain told the Government that British financial institutions had made negative comments about dealing with the Central Bank of Ireland.

The British institutions felt the Bank was "overly aggressive" and unduly focused on minor infringements, briefing notes drawn up for Finance Minister Michael Noonan before last month's meeting with Central Bank governor Patrick Honohan show.

The notes, obtained by The Irish Times, said there was no evidence of how active the Bank had been in trying to get banks to cut standard variable mortgage rates.

The notes say the Central Bank has historically preferred to rely on persuasion rather than directly taking control of rates, as it has argued that this would hinder competition.

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