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Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Ulster Bank (5 Oct 2017)

Kieran O'Donnell: My first question is a practical one. The normal bank requirement under the Central Bank rules is a minimum 10% of deposit for a home owner. Is that correct?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Ulster Bank (5 Oct 2017)

Kieran O'Donnell: There are exceptions. The bank is entitled to have exceptions.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Ulster Bank (5 Oct 2017)

Kieran O'Donnell: Would the exceptions happen throughout the year or would they be made at the start of the year?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Ulster Bank (5 Oct 2017)

Kieran O'Donnell: We are coming across many first-time buyers who are finding it very difficult to put the deposit together because, invariably, they are living in rental accommodation and paying anything from €800 to €1,200 per month in rent. I am framing the question in the context of the exceptions. Consider the case of someone who is renting consistently and meets the requirements beyond...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Ulster Bank (5 Oct 2017)

Kieran O'Donnell: The mortgage repayment would be less than what is paid in rent.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Ulster Bank (5 Oct 2017)

Kieran O'Donnell: I refer to where the mortgage repayment is less than the rent but where one shows a capacity to save.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Ulster Bank (5 Oct 2017)

Kieran O'Donnell: On what percentage of the bank’s loan book can an exception be made? What is the ratio?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Ulster Bank (5 Oct 2017)

Kieran O'Donnell: What is it?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Ulster Bank (5 Oct 2017)

Kieran O'Donnell: It was willing to allow a situation whereby, on top of the exceptions, it might give another 20% where a consistent savings pattern is demonstrated and the mortgage repayment is less than the monthly rent.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Ulster Bank (5 Oct 2017)

Kieran O'Donnell: Does the witness believe it is possible to have another property crash in Ireland, be it residential or commercial?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Ulster Bank (5 Oct 2017)

Kieran O'Donnell: Does Mr. Mallon believe there is an undersupply of housing?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Ulster Bank (5 Oct 2017)

Kieran O'Donnell: May I proceed to question 13 in the booklet?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Ulster Bank (5 Oct 2017)

Kieran O'Donnell: I refer to pages 30 and 31 of the booklet that was handed out. The question is purely related to sales to vulture funds. We are getting a lot of feedback from individuals whose loans have now ended up with the various entities, Cerberus being the most high profile. I have a few housekeeping questions first. The loans sold on between 2014 and 2016 total approximately €13.7 billion....

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Ulster Bank (5 Oct 2017)

Kieran O'Donnell: Therefore, approximately €12 billion of the €13.7 is related to the Republic of Ireland. It is a Republic of Ireland sale in the main. Is that correct?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Ulster Bank (5 Oct 2017)

Kieran O'Donnell: Is there a breakdown? Issues arise regarding the sale of the SME sector loans. The farming sector is coming up quite a lot. What is now materialising, based on what we are hearing on the ground, is that entities like Cerberus are now getting to a point where they are seeking to deal with these loans. Of the €12 billion, do we know the breakdown between commercial real estate,...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Ulster Bank (5 Oct 2017)

Kieran O'Donnell: Was the GRG loan book sold on to-----

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Ulster Bank (5 Oct 2017)

Kieran O'Donnell: All the other sales, involving Aran, the €6.1 billion to Cerberus, Apollo, the €1.5 billion, Deutsche Bank, and the €800 million to Cerberus in July 2015, came from the GRG book.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Ulster Bank (5 Oct 2017)

Kieran O'Donnell: How much of the €2.5 billion would have come from the GRG book and how much would have come from-----

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Ulster Bank (5 Oct 2017)

Kieran O'Donnell: How much of the €12 billion relates to residential mortgages and how much relates to the SME sector?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland (Resumed): Ulster Bank (5 Oct 2017)

Kieran O'Donnell: There are 900 residential mortgages. What level relates to the SME sector?

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