ISME warns banks on raising rates

ISME yesterday warned Irish banks to refrain from gouging small and medium businesses through increased interest rates on the back of the subprime crisis and their claims of a funds shortage.

ISME chief executive Mark Fielding said: “Some banking institutions have painted themselves into a corner and are now attempting to have small businesses pay for the consequences of the banks’ irresponsible financial decisions by increasing interest rates.

“Other opportunistic bankers are using the scare as an excuse to hike rates, despite the fact that the Northern Rock business model is unique and the supply of money for Irish banks from the ECB is not a problem.”