Results 10,921-10,940 of 27,945 for speaker:Michael McGrath

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector: Quarterly Engagement with the Central Bank of Ireland (10 May 2018)

Michael McGrath: I shall now turn to budgetary policy. We are still five months out from the budget but if there is fiscal space of more than €3 billion - and this is not yet certain - would it be prudent to use all of that or does the Governor think there should be a scaling back of expectations and a more cautious approach to the budget?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector: Quarterly Engagement with the Central Bank of Ireland (10 May 2018)

Michael McGrath: On the issue of split mortgages and in the context of non-performing loans, what work is ongoing around the definition? This relates to Permanent TSB's split mortgages and the fact that AIB's split mortgages are deemed to be performing loans under the European Banking Authority's single supervisory mechanism, SSM, technical definition. What work is ongoing around the more than 4,000 split...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector: Quarterly Engagement with the Central Bank of Ireland (10 May 2018)

Michael McGrath: The current classification remains that - in the case of one bank - they can be deemed as non-performing by the SSM. That is the reality. In this bank's case, the warehoused element can be transferred at any time into the active mortgage, whereas in the case of AIB the warehoused element cannot be transferred in until the active mortgage has been fully repaid. The fact that it is open to...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector: Quarterly Engagement with the Central Bank of Ireland (10 May 2018)

Michael McGrath: The banks are clear on what they need to do to meet that. I will raise one other issue and come back in later to discuss tracker mortgages. The definition of a "first-time buyer" in the context of the macroprudential rules makes a huge difference, particularly when the Government's help-to-buy scheme is considered. In the case of a house on sale for €400,000, if I am a non...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector: Quarterly Engagement with the Central Bank of Ireland (10 May 2018)

Michael McGrath: Why does the deposit need to be 20% for the non first-time buyer in the first place, aside from the variation allowed in lending?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector: Quarterly Engagement with the Central Bank of Ireland (10 May 2018)

Michael McGrath: I wish to raise two related points. One is the issue of returning emigrants. I have a number of cases of people who went abroad when the economy crashed. They bought a property in London, for example, lived there for a number of years, sold it and returned home. They do not have a huge lump sum and they never owned a property in this jurisdiction but they are deemed to be non first-time...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector: Quarterly Engagement with the Central Bank of Ireland (10 May 2018)

Michael McGrath: Will Professor Lane come back to me on it?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector: Quarterly Engagement with the Central Bank of Ireland (10 May 2018)

Michael McGrath: There are different definitions. The Government's Rebuilding Ireland home loan scheme provides for exceptions, including where someone owned a property in the State previously and he or she is divorced under a court order or party to a separation agreement and then buys a property which is the first since leaving the family home. There are, therefore, a number of exceptions whereby even if...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector: Quarterly Engagement with the Central Bank of Ireland (10 May 2018)

Michael McGrath: That is not what Senator Paddy Burke referred to. He referred to the private equity firms and not the regulated credit servicing firms.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector: Quarterly Engagement with the Central Bank of Ireland (10 May 2018)

Michael McGrath: The private equity firms will not come here.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector: Quarterly Engagement with the Central Bank of Ireland (10 May 2018)

Michael McGrath: I propose that we adjourn for 30 minutes as we have to attend the House for a vote.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector: Quarterly Engagement with the Central Bank of Ireland (10 May 2018)

Michael McGrath: To pick up on that point, it is important to say that Dáil Éireann decided unanimously at the level of principle on Second Stage that loan owners should be regulated. That decision was made. We will, of course, take on board the views of the Central Bank of Ireland as to how best to do that but that decision was made in principle and it will be put into effect. What I have not...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector: Quarterly Engagement with the Central Bank of Ireland (10 May 2018)

Michael McGrath: If Professor Lane wants to-----

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector: Quarterly Engagement with the Central Bank of Ireland (10 May 2018)

Michael McGrath: In essence what is the downside from the Central Bank of Ireland's perspective of regulating loan owners?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector: Quarterly Engagement with the Central Bank of Ireland (10 May 2018)

Michael McGrath: My question again was what is the downside.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector: Quarterly Engagement with the Central Bank of Ireland (10 May 2018)

Michael McGrath: Professor Lane has mentioned two drawbacks of the proposal - that it varies from emerging European norms and that it will impose some costs on vulture funds - and said he does not see any benefit from it. They seem to be his key points.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector: Quarterly Engagement with the Central Bank of Ireland (10 May 2018)

Michael McGrath: I think Professor Lane is completely wrong. The reality is that if my loan is sold to a fund, it will make all of the key decisions surrounding it. Such a fund would be beyond the reach of the Central Bank. We heard a while ago about ongoing inspections with the credit servicing firms. The credit servicing firms are the conduits and channels of communication between the borrowers and the...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector: Quarterly Engagement with the Central Bank of Ireland (10 May 2018)

Michael McGrath: I ask Professor Lane to answer my question. What can the Central Bank do directly to a loan owner or fund that is in flagrant breach of a code or regulation?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector: Quarterly Engagement with the Central Bank of Ireland (10 May 2018)

Michael McGrath: Yes, the middle man.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector: Quarterly Engagement with the Central Bank of Ireland (10 May 2018)

Michael McGrath: I would like Professor Lane to answer my direct question. What can the Central Bank do to a loan owner that is in flagrant breach of a regulation or code of conduct?