'Zombie banks' won't loan money for homes in Mayo

People can’t get loans from banks and this is exacerbating the housing crisis, according to Cllr Harry Barrett. 

Speaking at the recent meeting of Mayo County Council’s Housing Strategic Policy Committee (SPC), Cllr Barrett said the lack of lending was a huge problem.

"If you ask me, we have zombie banks here in Mayo that can’t loan unless they ring up Dublin for permission. For banks to function they should be putting out 90% of their money in loans but they are only giving 40%. So the banks are sitting back and at the same time giving negligible interest on savings. 

"This is causing hardship not just for young couples but also for builders as well because the whole thing has seized up and we can’t stand over it.” 

Cllr Michael Kilcoyne added: “The banks are making bigger profits than before the recession yet there would be no banks but for the taxpayers’ money that bailed them out, and some of these people whose money did that are now homeless. The banks should be told by the Housing Department that they need to look at their lending because they are only doing what suits them.” 

Cllr Neil Cruise agreed with his colleagues about the banks.

“They will give money to the vulture funds but not to Joe Public. That is what is going on in this country at the moment.”

• Published as part of the Local Democracy Reporting Scheme.