CIF seeks guarantee banks will pass on lower interest rates

The Construction Industry Federation has raised concerns that Irish banks are seeking to increase margins on business loans despite a drop in the cost of borrowing.

The CIF has written to the Governor of the Central Bank, the Financial Regulator and the Minister for Finance Brain Lenihan in relation to the matter.

The union said that before there is any further support of Irish banks there needs to be a guarantee that they will play their part by lending to Irish businesses at competitive rates.