IFA pushes for greater transparency on how banks publish interest rates

FARMERS want greater transparency from Irish banks on how they publish the interest rates they charge on loans, according to IFA farm business chairman James Kane.

Having previously published rates based on Euribor plus margin, the Irish banks have changed to publishing the Bank Cost of Funds plus margin. This move has taken away a clear and transparent reference rate.

This switch has made it more difficult for account holders to follow the interest rates they are being charged, given that the Euro Interbank Offered Rate (Euribor) can be read in newspapers daily.