Banks facing inquiry over ECB cuts

The Financial Services Regulatory Authority is planning to investigate how Irish banks have managed recent interest rate cuts announced by the European Central Bank.

Reports this morning said that Irish banks have failed to pass on the interest rate reductions to tens of thousands of overdraft, loan and credit card customers.

The FSRA has claimed that these customers only received a quarter of the value of interest rates reductions introduced since 2001.

In that period, the ECB's main lending rate has fallen from 4.75% to just 2%.