Results 9,061-9,080 of 27,945 for speaker:Michael McGrath

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 would hope, as each of those mortgages is reviewed on a periodic basis, that some of the warehoused element will come into the active mortgage and that they will start making inroads on the capital and interest. However, notwithstanding that, there will still likely be a residual warehoused element when the mortgage term ends and people are legitimately asking what will happen at...

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 interest rate on the interest-only part, as Mr. McMahon calls it, the warehoused element?

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 the warehoused element, therefore, it is the exact same interest rate as it is on the active part.

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: Potentially it could be up to 3%, 4% or 4.5%.

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: In terms of the amount of debt warehoused, does the bank have about 3,000 PDH mortgages where it has a warehoused element? If that was an average of €50,000, that would be €150 million.

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: With regard to mortgage lending, the macro prudential rules and the exceptions policy, does that work well? We read from time to time that the banks have used up their exceptions under loan to income and so on and that no more mortgages will be approved outside the macro prudential limits for the remainder of the year. Does that system need to be tweaked in any way or does it function well...

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: Is it based on approvals or drawdown?

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: Not all approvals are drawn down. Does the bank factor that in and provide more approvals to allow for the fact that not all of them will be drawn down?

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: Of course, 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: In general, what is the ratio of approvals to drawdown, not in the case of exceptions but generally, where the bank approves a mortgage? Would 70% or 80% of them be drawn down?

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 proportion of the bank's profitability is attributable to the mortgage market? Is it half or two thirds? What is it?

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: Does Ms McDonagh have any views on the risk-weighted assets issue? I refer to the amount of capital that has to be put aside for mortgage lending. The Department of Finance recently had a good report on the issue.

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 quoted Bank of Ireland at 29% for performing mortgages. Ireland has the fourth highest rate in the eurozone. Sweden has the lowest rate at 4%. In aggregate terms, Ireland was about 38%. Non-bank lenders, such as retail credit firms, are not bound by these risk-weighted asset capital requirements. Are they a major threat to mainstream lenders such as Bank of Ireland? Finance Ireland...

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 accept that. The extent of the look-back in those risk-weighted assets means there will not be any major change any time soon. New bank entrants would be bound by these rules but my point is that new non-bank entrants, such as retail credit firms, are not bound by these risk-weighted assets requirements. Do they offer the potential to shake up the market and, therefore, represent a real...

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 have some more quick questions. Does Ms McDonagh have a figure for the number of vacant properties in the ownership, possession or control of the Bank of Ireland? I do not think we asked that in the questionnaire.

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 am referring to houses, apartments and residential units.

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: There are 79 vacant properties and the 95 others are in addition.

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 a low number compared to other banks. The Bank of Ireland obviously makes an effort to turn these properties around when it comes into possession. It is does not sit on them.

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 fine. I assume the voluntary sale numbers are different. They are still in the ownership of the borrowers and those people may well remain in those properties until the sale is completed. Those are separate to the numbers outlined. There were 288 assisted voluntary sales of owner-occupier properties in 2018.

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: There can be significant difficulties for returning immigrants to Ireland in seeking to set up a bank account and access a mortgage. The issues involved include criminal justice legislation aimed at money laundering and the need to have a permanent address in Ireland, as well as other factors. When it comes to underwriting and making a decision about a mortgage application for a returning...