IBF: Banks should set their own interest rates

THE Irish Banking Federation (IBF) has rejected calls from the Financial Regulator for restrictions to banks’ mortgage lending rates, saying lenders should be able to set their own rates.

Speaking yesterday, IBF chief Pat Farrell said that it would be wrong to suggest that banks and other lenders are making the arrears crisis worse.

Last week, the Financial Regulator Matthew Elderfield called on lenders to stop increasing their mortgage interest rates; warning that he would consider introducing new powers to impose rate restrictions on banks.