Government must act on banks

I WAS appalled on Friday to receive a letter from my bank (Bank of Ireland) advising that my interest has risen by 0.5% to 4.75%.

This is one of the banks that — through a culture of corporate greed, incompetence, cronyism and ineptitude — has helped bring our country to its knees.

Now, not only am I forced to pay for what I see as a criminal act, with higher taxes and loss of services, I must pay a second time through unreasonably high interest rates.

In this culture where there are no options, no competitive forces, it is a case of take it or default. I find this totally unacceptable for what is effectively a state-owned bank and as such a bank that should not be profiteering on the misfortune of its beleaguered citizens.

In my opinion, the Government — as the elected representatives of the majority stakeholders — needs to instruct, not ask, these institutions that they will not be allowed to profiteer at the expense of their shareholders.

They need to be instructed that interest rate movements have to be aligned to the ECB. If these organisations cannot contain their costs then they need to restructure, just like any organisations in the private sector.

If necessary, they need to close branches. There is little or no reason for brick and mortar banks on every main street in the country.

They need to stop acting like they are offering a special service and start behaving like any other service provider and the Government needs to take a hard line with them now. If they fail, then so be it.

We, the taxpayer who are straddled with a €100bn-plus debt, cannot now be laden with excessive home repayments so that these bloated, inefficient and arrogant institutions can continue to exist unchanged.

With the number of stressed mortgages rising, the time to take action is now.

There is no point in the Government waiting another four years with its head in the sand and its citizens on their knees.

Paul Spencer

Tralee

Co Cork