The country’s main banks are to be questioned by an Oireachtas committee over claims customers are being hit with an unfair credit squeeze.
Fine Gael claimed many people are facing hikes in interest rates and restrictions on overdrafts as the banks try to drive up profits.
Its finance spokesman Kieran O'Donnell warned the crunch was becoming a major factor in the country's economic downturn.
"Many consumers and businesses who have long-standing relationships with the banks are now finding themselves in the midst of a credit squeeze from financial institutions," Mr O'Donnell told a meeting of the committee today.
"The banks are raising interest rates in an effort to maximise profit margins, while restricting access to new commercial lending.
"They are also restricting access to overdrafts and other credit arrangements."
Mr O'Donnell said the restrictions were already having an impact on customers. "(It)is now becoming a major factor in the economic slowdown," he said.
"The banks have a key role to play in bringing the economy back to health and should support hard-pressed businesses and mortgage holders, rather than penalising them."
Mr O'Donnell said he hopes the bank will accept the invitation to come before the committee.
PA