Bank rip-off costs customers €1bn

THE failure of banks to pass on European interest rate cuts has cost consumers €1 billion in extra interest charges, the Oireachtas Finance Committee heard yesterday.

The extent of the rip-off by financial institutions came as the Irish Financial Services Regulatory Authority (IFSRA) announced it was launching an investigation amid growing public concern.

The IFSRA, which has been in operation for just 10 weeks, is also set to challenge the banking sector and promote competition by publishing league tables comparing the cost of banking services and encouraging customers to move their business to the cheapest option.