Central Bank report shows banks making profits on the backs of Irish consumers: Pearse Doherty TD
Sinn Féin Finance Spokesperson Pearse Doherty TD has said that the Central Bank report on the profitability of Irish banks show a direct link between the rip off of Irish consumers and the profitability of the banking sector.
Teachta Doherty said:
“The note from the Central Bank shows the direct link between their rip-off policies and their profitability. The Bank’s suggestion that this profitability might lead to new entrants is akin to saying that other banks are waiting until there is enough space for them to enter and rip off customers too. That is not how a functioning market is supposed to work.
"The report shows that the net interest margin at Irish banks has increased significantly while it has declined across Europe.
"The report puts this down to greater competition for deposits in the rest of the euro area, pushing deposit rates up and as a result reducing the positive contribution of liabilities in the low-interest rate environment.
"Irish banks were in a position to capitalise on low funding costs and increase their margins substantially over the period. In other words Irish consumers are paying the price for the profitability of Irish banks.
"The government has absolutely failed to attract new banks to Ireland leaving what Mario Draghi called the “quasi-monopoly” to reap the profits.
"Government policy has been 'banks first and banks last'. All their policy decisions in banking have been about protecting the banks above the public. They are fattening up the banks for sale by letting them gorge on the workers.
"Greater completion is required but so too is reform.This must include mortgage interest rate caps, taxing the banks profits and a ban on sales to vultures of family homes.”