Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

When the legislation was being introduced we put it to the Government that the owner of the loan should always be a regulated entity. The argument used by the Government was that such a requirement would restrict the origination of new loans from non-bank lenders and with the sources of finance in the economy broadening, which is a good thing, it would cause problems if the entities involved had to be regulated. The Central Bank could insist that a sale of a loan could only be executed where the purchaser of the loan was a regulated entity. That would not prevent the origination of new sources of finance from non-bank sources. Do the witnesses wish to comment on that?