Results 6,761-6,780 of 16,492 for speaker:Ciarán Lynch

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Ciarán Lynch: Thank you. Deputy Joe Higgins?

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Ciarán Lynch: Yes, I'll just come in. It may be without ... not within the terms of reference, so I will give you the leverage, Mr. Goggin, to either choose to respond to it or not.

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Ciarán Lynch: Okay, thank you.

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Ciarán Lynch: The question drifts outside the terms of reference, so Mr. Goggin cannot be compelled to answer it. Now, I can give you, if you wish to reframe the question or to approach it from a different angle that brings it within the terms of reference, Deputy Higgins, I can facilitate that. But Mr. Goggin is within his rights not to-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Ciarán Lynch: Deputy.

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Ciarán Lynch: Okay, thank you. Just to ... in Deputy Higgins' earlier question to you there, speaking about the risk concentrations and so forth, I want to delve into the issue of interest roll-up facilities that were being provided. Deputy Higgins was talking about the buy-to-let sector, and to talk about maybe the more investment, high development area. And in doing so just to reference the core...

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Ciarán Lynch: B2. BOI - B2.

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Ciarán Lynch: Page 99. And just in the second paragraph of that, you ... this relates to what was a review of group risk policy committee land bank limits and interest roll-ups, July '08. It's an extract from that, Mr Goggin.

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Ciarán Lynch: Okay. I'll just take the paragraph there for us that says, "The BBRoI Landbank book is approaching its limit and, without any new deals, is generating an additional €50m in exposure every six months as interest roll up facilities accumulate into principal balances." Would you care to comment upon how this was happening, and how the impact of the interest roll-up was actually...

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Ciarán Lynch: Yes. And in the establishment of these loans and just the process to getting them into place, were there specific financial covenants in place?

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Ciarán Lynch: Okay. So, through ... you're saying that there were specific financial covenants in place?

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Ciarán Lynch: For these? And did that give the bank then ... did you believe then that the bank had sufficient means to monitor the performance of the increase risk of the loans, loan book that would happen as a result of this?

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Ciarán Lynch: Okay, right. Thank you. Moving on I now bring in Senator Sean Barrett, ten minutes.

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Ciarán Lynch: There's a question I need to get in now as a result. So if you could just maybe very prompt at this-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Ciarán Lynch: I need to allow time in the questioning for it to happen.

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Ciarán Lynch: Thank you very much, Senator. I would just wish to come back to something there. It's to do with the wholesale funding. Mr. Goggin. There are two reports on it. They both relate to core documents Bank of Ireland B3 and they spread over pages 15 to 21.

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Ciarán Lynch: B3.

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Ciarán Lynch: That's fine. I've shuffled them up meself as well. Pages 15 to 21.

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Ciarán Lynch: In summary over those pages, in 2001 wholesale borrowings in Bank of Ireland were €16.7 billion and accounted for 22.6% of the funding and, by March 2007, these figures were €79.9 billion and 45%, respectively. Now that's a very, very measurable and significant increase in figures if you forget about the percentages when you just look at the sum to which the percentages are...

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)

Ciarán Lynch: Okay, so this comes back to our earlier conversation of this morning where there are concerns with borrowing short and lending long with that money. We see an acceleration of that model moving from €16.7 billion up to €79.9 billion.