Sir, – We hear from the bankers and commentators that the banks need to be allowed to operate in a fully commercial way unhindered by Government, regulators and the Central Bank when it comes to standard variable rates. I, for one, am thrilled by this news and look forward to the €64 billion being returned to the State coffers by close of business. €64 billion with six years’ interest, at say, 4.5 per cent, would surely gladden the hearts of the population. Finally, fully commercial operations in the banks.
The banks also argue that they need to maximise the return to the State. They intend to turn that €64 billion into a €40 billion return and still use the term “maximise”.
I can imagine a scenario where I’m a small business holder, struggling to survive and Michael Noonan is the bank manager. I go in and ask for €64,000 of emergency funding to keep the business going. My plan is to overcharge some of my customers and I’ll be back in a few years with €40,000 for him. I know what commercial reality will hit me then. – Yours, etc,
CONAN DOYLE,
Kilkenny.
Sir, – I am somewhat perplexed at the continuous reference in The Irish Times to the variable rate charged by AIB. I am unlucky enough to have invested in property just at the end of the boom and have been left with a rather large debt. Mea culpa. The bank did not ask me to take out the loan. Fortunately I have managed to reduce it considerably. However, in the last three years the bank has increased the rate several times to 5.4 per cent but has not reduced it at all until now and then by a paltry 0.25 per cent. My rate has never been referred to in the press. – Yours, etc,
DENIS O’DONOGHUE,
Moate,
Co Westmeath.