Oireachtas committee to question bankers

Irish banking chiefs are to be questioned by an Oireachtas committee in the wake of the Government’s decision to guarantee all deposits in Irish financial institutions.

The Oireachtas Committee on Finacne will seek “assurances and detailed answers from the banks on how they plan to proceed in light of the Government guarantee”, the committee’s chairman Michael Ahern TD said.

“Obviously there have been a lot of developments in the banking sector in this country and around the world since we last met with the banking chiefs in July,” Mr Ahern said.

“We need to discuss how the current banking situation came about and how things changed since our previous meeting.

“The Government and the State now has an even more significant interest in the performance of our banks for the next two years and we deserve some straightforward answers.”

He said the public deserved to know how the banks plan on using the Government guarantee and whether this will have an affect on bank charges or mortgages.

“We will also look to cover other topics such as whether the new economic realities will be reflected in the salaries of the top banking executives,” Mr Ahern added.

In July, the committee was told that banks were open for business and were continuing to lend to consumers and businesses despite the economic downturn.

Irish Banking Federation chief executive Pat Farrell told the committee in July: "There is a myth at the moment that banks are not open for business. They are open for business."