Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

Ulster Bank Ireland Limited is a regulated entity, licensed pursuant to section 9 of the Central Bank Act 1971. It is also subject to the Central Bank's mortgage arrears resolution targets, MART, process. Ulster Bank's performance in respect of these targets is closely monitored and the Central Bank's MART audits examine the bank's processes of determining and proposing sustainable solutions against its sustainability guidelines. The consumer protection framework also applies to Ulster Bank Ireland Limited and includes the consumer protection code and the code of conduct on mortgage arrears, CCMA. These are statutory codes with which Ulster Bank Ireland Limited must comply. The recent announcement by Ulster Bank does not alter these requirements.

In terms of mortgage arrears, the CCMA sets out requirements for all mortgage lenders dealing with borrowers facing or in mortgage arrears and provides a strong consumer protection framework to ensure borrowers struggling to keep up mortgage repayments are treated in a fair and transparent manner by their lenders and that long-term resolutions are sought by lenders with each of their borrowers. The CCMA also sets out the framework that lenders must use when dealing with borrowers in mortgage arrears or pre-arrears. This framework is known as the mortgage arrears resolution process, MARP, and it sets out the four steps lenders must follow in dealing with borrowers in difficulty, namely: the lender must communicate with the borrower; the lender must gather financial information; the borrower's circumstances must be assessed; and a resolution is proposed.

As part of the normal business of my Department, my officials meet regularly representatives of Ulster Bank. They and I met RBS executives, including the current CEO, last week. The Deputy may be aware that, following the review by the UK Treasury in the autumn of 2013, RBS reaffirmed its commitment to the Irish market.  It is reviewing the operations of Ulster Bank in Ireland with a view to creating a sustainable business model.  It is expected that the findings of the review will be published by the end of February 2014.

See this speech in context