While this weeks interest rate reductions were broadly welcomed, there have been calls to keep a stringent watch on the financial institutions to ensure all necessary information is passed onto customers. ISME, the Irish Small & Medium Enterprises Association, demanded that financial institutions that do not pass on today's interest rate reduction in full should be named, shamed and sanctioned.

ISME Chief Executive Mark Fielding, said, "The interest rate reduction will benefit companies who have existing facilities in place with their banks, only if that rate reduction is passed on in full. Evidence shows that not all banks have complied, with Bank of Ireland and Permanent TSB refusing to pass on the full benefit of the last rate reduction."

"It is totally unacceptable that some of the main business banks in the Country are still profiteering as hard pressed businesses are stretched, with redundancies spiraling, due to lack of affordable finance and other cost issues."

Continuing, he said, "It is unacceptable and downright blackguardism that some banks are refusing to pass on the ECB rate reduction at a time when the Irish taxpayer has been forced to bail out these same banks to the tune of €400 billion. It shows a complete disregard for their business customers and questions their commitment to the Irish economy and the SME sector in particular.

"Serious sanctions, including a withdrawal of the government guarantee scheme, should be applied to any of the banks who refuse to pass the rate reductions in full. The Government must instruct the Financial Regulator to monitor the banks and name and shame any institutions that are not complying," concluded Fielding.

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