Oct. 14 (Bloomberg) -- Ireland’s bailed-out banks face restrictions on their ability to increase variable home-loan rates, if their actions worsen the mortgage arrears situation, according to Matthew Elderfield, the country’s head of financial regulation.
“If the banks continue to act in a way which is so damaging to customers” they risk a “response involving powers to impose direct restrictions on their rate-setting capacity by the competition or financial regulation authorities,” Elderfield said in an e-mailed speech in Cork, southern Ireland today.
Banks that received state capital injections must provide an impact analysis of proposed rate increase on arrears and future cash needs, Elderfield said.
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