Results 9,041-9,060 of 27,945 for speaker:Michael McGrath

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Insurance Costs for Small and Medium Businesses: Discussion (4 Apr 2019)

Michael McGrath: The bottom line is that the reward for that litigation and claim is too great. There may not be a great foundation to it but the reward is potentially significant. The downside of taking a claim, especially taking a claim without foundation, is non-existent in the current climate.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Bank of Ireland (4 Apr 2019)

Michael McGrath: I welcome Ms McDonagh and her team and thank them for completing the detailed questionnaire and providing their opening statement. I will pick up on mortgage pricing where Deputy Doherty left off. He referred to the variable rate of up to 4.5%. The bank indicated in response to a question that 47,387 customer mortgage accounts are on a variable rate. That is 25% of the bank's total...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Bank of Ireland (4 Apr 2019)

Michael McGrath: Notwithstanding everything Ms McDonagh stated regarding variable rates not being the area in which the bank is really competing, a quarter of the bank's total mortgage accounts are on a variable rate, which is high relative to its competitors in the market, although the number is falling. Ms McDonagh provided statistics regarding the number who have moved to a fixed-rate offering. Can the...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Bank of Ireland (4 Apr 2019)

Michael McGrath: Ms McDonagh says people with a loan to value of less than 60% who are on a variable rate are on 3.9%. That is if they have been proactive and have responded to the bank's letters and sent in an up-to-date valuation. I bet thousands of customers have a low loan to value ration but are still on the interest rate for over 80% LTV. They have never gone about sending in that up-to-date...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Bank of Ireland (4 Apr 2019)

Michael McGrath: The public debate on this issue is helpful. One thing that has surprised me is the number of people who do not know what interest rate they are paying on their mortgage. It is the first thing people should check because there are tens of thousands of customers across all the banks who are paying too much. It is an overall message that we all need to continue to convey.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Bank of Ireland (4 Apr 2019)

Michael McGrath: I welcome that commitment and I think it is an area where we all need to be doing more. On pricing generally, and I have had this debate with Ms McDonagh before, even Bank of Ireland's fixed rate offer is not risk based. The bank does not do risk based mortgage pricing. We were always told that the price of the mortgage was commensurate with the risk yet Bank of Ireland has gone with a...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Bank of Ireland (4 Apr 2019)

Michael McGrath: It varies by the length of the fixed term but not by the LTV.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Bank of Ireland (4 Apr 2019)

Michael McGrath: That is the only differentiation in the whole fixed rate offering on LTV.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Bank of Ireland (4 Apr 2019)

Michael McGrath: On a related point, when it comes to the bank making decisions in its operations and putting the consumer first, it is a great slogan but what about when it runs counter to profit maximisation goal of getting the best possible return for investors? Bank of Ireland is part of this bank culture board which will be reporting in the next ten or 11 days and we will see what it comes up with....

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Bank of Ireland (4 Apr 2019)

Michael McGrath: The bank has announced a securitisation programme which it believes will bring its non-performing exposures, NPEs, to about 5.8%. Is Ms McDonagh saying the bank is not working to a particular target for this or was it given a target? Does she expect any further initiatives, apart from working through each individual loan? Does she expect more securitisations or actual portfolio sales to...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Bank of Ireland (4 Apr 2019)

Michael McGrath: What is the bank's current policy on the sale of owner-occupier mortgages?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Bank of Ireland (4 Apr 2019)

Michael McGrath: Ms McDonagh is not ruling it out.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Bank of Ireland (4 Apr 2019)

Michael McGrath: A pay review commissioned by the Minister, Deputy Donohoe, and being undertaken by Korn Ferry, was due to be completed a few months ago and is presumably not far away from being completed. Has Bank of Ireland been involved in the process or been consulted? Did it make a submission and does it have any observations to make to the committee on it? We know that AIB has lost a CEO and a chief...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Bank of Ireland (4 Apr 2019)

Michael McGrath: What does Ms McDonagh mean by "normalisation of bankers' pay, aligned with European Banking Authority guidelines"?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Bank of Ireland (4 Apr 2019)

Michael McGrath: What operational impact has it had on Bank of Ireland? Has it had retention problems as a result of the pay cap? What are the issues the bank is facing?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Bank of Ireland (4 Apr 2019)

Michael McGrath: This committee has started the scrutiny phase of Deputy Pearse Doherty's Private Members' Bill, the No Consent, No Sale Bill 2019. We invited submissions and received them from Banking and Payments Federation Ireland, BPFI, and others in the industry, as well as from debtor advocacy groups that are in favour of the legislation, which seeks to provide that prior to the sale of a mortgage to a...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Bank of Ireland (4 Apr 2019)

Michael McGrath: Why? Ms McDonagh has given us a conclusion there but not how it was arrived at and why.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Bank of Ireland (4 Apr 2019)

Michael McGrath: I want to ask some additional questions if I may. With regard to restructurings or forbearance measures the bank entered into in respect of mortgages, we can see the table for private dwelling houses, PDHs, for example, and the vast majority of them are term extension or arrears capitalisation. Currently, the bank has done 2,916 PDH split mortgages. I ask about the bank's policy down the...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Bank of Ireland (4 Apr 2019)

Michael McGrath: I was, yes.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Bank of Ireland (4 Apr 2019)

Michael McGrath: It would be case by case.