The Taoiseach Enda Kenny says he expects banks "to do better" to give customers lower interest rates on their mortgages.

But Mr Kenny denies that he has deliberately set up banks to reward the 'elites' instead of ordinary people.

He is commenting ahead of a vote tonight on a Fianna Fáil motion, asking the government to lobby banks for lower rates.

Mr Kenny says Irish banks cannot charge more than those elsewhere in the Eurozone now that they are back making a profit.

He told the Dáil that Irish banks are now paying lower interest rates themselves, and need to pass on the savings.