Wednesday 20 June 2018

There is no justification for massive bank profits - steps must be taken

Gardai should question bankers over trackers and an interest rate-capping law should be enacted

'new Irish home borrowers were charged an average interest rate of 3.2pc.' (Stock photo)
'new Irish home borrowers were charged an average interest rate of 3.2pc.' (Stock photo)
Dan O'Brien

Dan O'Brien

Irish banks, collectively and on average, are much more profitable than banks across the rest of the euro area. That has been the case for four years. These facts are not as widely known as they should be.

Among the biggest reasons the banks are making so much money is because the interest rates they charge their individual customers are the highest bar none among the 19 members of the Eurozone, according to European Central Bank figures.

Those figures show that in August, the most recent month for which Eurozone-wide rates are available, new Irish home borrowers were charged an average interest rate of 3.2pc. Finns, who get the best deal, paid 1pc. The average rate across the entire euro region was 1.9pc.

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