Results 14,441-14,460 of 27,945 for speaker:Michael McGrath
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland: Allied Irish Banks (24 Nov 2016)
Michael McGrath: I still have not got the justification for this. Does AIB intend to review this?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland: Allied Irish Banks (24 Nov 2016)
Michael McGrath: However, the bottom line is that the cashback sweetener comes at a price for the existing customer cohort. They do not get the extra reduction in their ongoing rate-----
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland: Allied Irish Banks (24 Nov 2016)
Michael McGrath: That must be acknowledged. If that is the case, it is unfair, but that is AIB's policy for now at least. Regarding the blended cost of funds, Mr. Byrne has provided us with a table in question 18. Will he translate it for me? Last year, he gave us a very clear answer that in the second half of 2014 the blended cost of funds was 1.57%. What is the corresponding figure as of June 2016?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland: Allied Irish Banks (24 Nov 2016)
Michael McGrath: It is what is described as average interest-earning liabilities-----
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland: Allied Irish Banks (24 Nov 2016)
Michael McGrath: -----in the table. The rate of 1.28% is a good bit higher than those of Permanent TSB and Bank of Ireland, which both come in at around 0.75%.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland: Allied Irish Banks (24 Nov 2016)
Michael McGrath: I note that AIB's fixed rates are higher than its variable rates. This is the bank's pricing strategy, presumably, which is quite different to Bank of Ireland's, which has kept its variable rate high and opted for lower fixed rates. AIB has reduced its variable rates. Its fixed rates are slightly higher than its variable rates. This is a very deliberate policy.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland: Allied Irish Banks (24 Nov 2016)
Michael McGrath: I make the general point that it is instructive that, though AIB has a higher cost of funds and blended cost of funds, it has managed to reduce its variable rate to effectively the lowest in the market, whereas other banks that have a much lower cost of funds stand over much higher variable rates. This proves the point that there is scope in the case of a number of other banks to reduce...
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland: Allied Irish Banks (24 Nov 2016)
Michael McGrath: There is no prevailing tracker for somebody who has not had a tracker.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland: Allied Irish Banks (24 Nov 2016)
Michael McGrath: They do not exist.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland: Allied Irish Banks (24 Nov 2016)
Michael McGrath: How many customers are in this category? Does it consist of the 2,600 or so in this programme who had that clause in their mortgage contracts whereby at the end of the fixed rate they had a choice?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland: Allied Irish Banks (24 Nov 2016)
Michael McGrath: I accept that. The case to which I refer is quite specific. The customer could choose a tracker rate at the end of the fixed rate period. There are no new tracker products to choose from, so this is down to interpretation, but one can certainly argue that the customer is entitled to the current tracker rate.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland: Allied Irish Banks (24 Nov 2016)
Michael McGrath: There are no new tracker products but there is a prevailing tracker rate for a very large customer base. However, AIB is not offering that to the customers who now choose a tracker. It is down to interpretation.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland: Allied Irish Banks (24 Nov 2016)
Michael McGrath: AIB has arrived at a figure of 3.67%, and it seems to customers that it is determining the new tracker margin by reference to its general SVR.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland: Allied Irish Banks (24 Nov 2016)
Michael McGrath: We asked about the possible sale of loan portfolios on page 15 of the questionnaire. The bank's reply was that it is reviewing all options. Is the sale of loan books, particularly residential mortgages, under active consideration by the bank?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland: Allied Irish Banks (24 Nov 2016)
Michael McGrath: Under the relationship framework agreement with the Minister, is the bank required to consult or get the permission of the Minister if it is seeking to dispose of a loan portfolio above a certain threshold?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland: Allied Irish Banks (24 Nov 2016)
Michael McGrath: Okay. I believe the threshold is €100 million in the case of AIB. Is that right?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland: Allied Irish Banks (24 Nov 2016)
Michael McGrath: I believe the bank is required to consult the Minister. Is that correct?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland: Allied Irish Banks (24 Nov 2016)
Michael McGrath: I believe the relationship framework agreement deals with that issue.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland: Allied Irish Banks (24 Nov 2016)
Michael McGrath: Question 5, on page 3 of the questionnaire under the heading of "Voluntary & Legal & Surrender", relates to the issue of family homes. By my calculation, some 5,729 mortgages fall under the categories covered in the first four lines of the box at the top of page 3. The four categories are issuing of a civil bill at the court; civil bill served on the borrower; court hearing...
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Banking Sector in Ireland: Allied Irish Banks (24 Nov 2016)
Michael McGrath: The categories in the second box are voluntary sale; voluntary surrender; trade-down; and other solution. If these 7,500 mortgages are added to the 569 mortgages and the 722 mortgages in the previous box, it is clear almost 9,000 properties have been repossessed or, in the majority of cases, are well down the road to being repossessed. Is AIB pursuing this approach as a means of triggering...