Kenny to haul banks before economic council

TAOISEACH Enda Kenny and senior ministers are set to haul in the banks next week and quiz them over their failure to lend a promised €6 billion to struggling businesses.

Banks accused of holding back loans to troubled firms will come before the “economic council” — the Government’s super ministry — of Mr Kenny, Eamon Gilmore, Michael Noonan and Brendan Howlin.

The Taoiseach said banks may also come under pressure to pass on reduced European Central Bank interest rates to mortgage holders if the financial regulator proposes banking changes to the Government.