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

I have two other questions. One relates to non-performing loans, which the Commissioner addressed in his opening statement. The rate in Ireland is falling but it is still high. The way we would like to see banks reduce their non-performing loans is by reaching agreements with borrowers and restructuring loans but what we find here in practice is that the main banks are reducing their level of non-performing loans by selling loan portfolios to international funds, commonly known here as vulture funds. That is the main method being used here to reduce the level of non-performing loans so while it might improve the balance sheet of the financial institution concerned, it can create other knock-on problems and consequences, particularly for the borrower whose loan may now be owned by a fund that takes a much more aggressive stance by way of foreclosure, enforcement and so on. It is the Commissioner's objective to reduce non-performing loans but does he have any view on how that should be done?