AIB can't cut mortgage rates, bank expected to tell Dáil committee

The chief executive of AIB is expected to tell an Oireachtas committee today that the bank's variable mortgage rates cannot be cut, in order to protect its future.

David Duffy is due to appear before a session of the all-party Finance group to face questions about mortgage policy and AIB's strategy on repossessions.

The interest being paid by variable mortgage holders has been sharply criticised lately, including by Finance Minister

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However, Mr Duffy is expected to dismiss claims that the bank is borrowing money at almost no cost as "overly simplistic".

The committee has been holding regular meetings with all the main banks to monitor their progress.

Finance committee chairman deputy Liam Twomey said today's agenda included "issues around repossessions and mortgage interest rates, especially the variable interest rates, general and commercial lending policy.

"We're also going to be asking where (David Duffy) sees the bank going in the future."