The Finance Minister Michael Noonan has not ruled out imposing a levy on banks who refuse to cut their mortgage interest rates.

He says he will spend the coming days examining a review conducted by the Central Bank of rates being charged - ahead of meeting the main lenders next week.

Some lenders have been accused of ripping off some variable rate mortgage holders by charging them up to 1% more in order to increase profits.

Mr Noonan admits the option of a tax or levy on banks who do not comply with demands to cut their rates is open to him in the next budget.

Meanwhile, the government has announced new measures to deal with the mortgage arrears crisis.

Among them is an independent court review that will have the power to approve insolvency deals that have been rejected by banks.

There is also an extension of the mortgage-to-rent scheme to deal with most of the 38,000 mortgages that remain in arrears.

Under the new system, the courts can review and effectively overturn a bank veto.

Justice Minister Frances Fitzgerald says this was as far as she could go constitutionally.