Seanad debates

Wednesday, 19 October 2011

Central Bank and Credit Institutions (Resolution) (No. 2) Bill 2011: Committee and Remaining Stages

 

12:00 pm

Photo of Marc MacSharryMarc MacSharry (Fianna Fail)

The issue of mortgage arreas, which we discussed this morning, comes to mind and there is a code of conduct on mortgage arrears. While the codes of conduct are statutory under the Act that the Minister mentioned, I do not believe they are not open to interpretation. If the Central Bank deems that one follows the code of conduct, I do not believe a court can take issue with an aspect within the code of practice other than the Central Bank saying that as far as it is concerned the broad thrust of the code of practice has been followed.

I agree with Senator Barrett's point that we need to be much more prescriptive with banks than we are, including in this instance. The light touch regulation of the past and the promixity of the Central Bank, the banks and credit unions and so on has not served us well. We should look at, as was suggested by the Senator on the other side, making things a little more definite in terms of procedures that need to be followed. I am not sure that the Central Bank should take absolute control. In this instance, I would take a little more comfort if the Minister had a little more input.

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