Bloomberg News

Ireland’s Elderfield Says Banks Risk Variable Rate Restrictions

October 14, 2011

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.

To contact the reporter on this story: Joe Brennan in Dublin at jbrennan29@bloomberg.net

To contact the editor responsible for this story: Finbarr Flynn at fflynn3@bloomberg.net


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