Four senior bankers, one from each of the four main banks, answered questions from members of the Oireachtas Finance Committee this afternoon.
Fine Gael TD Kieran O'Donnell accused the banks of blackmailing customers by charging higher surcharge rates and loan rates to businesses.
Deputy O'Donnell suggested there was a time when the value of properties bank loans were guaranteed against were more important than the business proposals the loans were being sought for. Now that property assets were falling in value, loans were drying up.
Labour's Joan Burton questioned whether the salaries paid to top banking executives. She said these seemed excessive to most people.
Bank of Ireland's Richard Boucher said much of the salary of top executives was in bonuses and shares, the value of which fluctuated with the fortunes of the bank.
Concern was also expressed about the impact of falling property values on some 110,000 recent mortgage customers whose property assets were now depreciating. The banks said that negative equity had not become an issue for them and no-one who had taken out a 100% mortgage was in arrears.
FG's Sean Barrett questioned how banks were able to issue loans on property sales where the envisaged building programme bore no relation to what planning permission could be obtained for under local authority development plans.
The bankers said they were open for business and anxious to lend but had to adhere to prudent lending practice in the interests of their stakeholders, which included staff, customers and shareholders.
