Sinn Féin spokesperson on Finance, Pearse Doherty TD, has called on banks to increase the deposit rates for savers.

The Donegal TD was speaking as the income Irish banks make on deposits has soared following successive interest rate hikes by the ECB.

Teachta Doherty said:

“Since July, the ECB has increased its deposit rate from 0 to 3 percent.

“In December, Irish-resident banks held just under €97 billion on deposit with the Central Bank.

“Recent interest rate hikes have boosted the interest income of our banks.

“AIB has seen their interest income jump by 20 percent with Bank of Ireland’s rising by 12 percent – increasing their profitability.

“While mortgage interest rates have risen, the banks have been slow to increase interest rates for savers.

“The banks can’t have it both ways.

“As a result of reduced competition in the sector with the withdrawal of Ulster Bank and KBC, there is a risk that banks will continue to squeeze savers.

“Irish banks should not continue to bolster their profits at the expense of savers.”