Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source

The Minister will also convey to the bank the importance of removing those customers from the sale portfolio who may be suitable for mortgage-to-rent, and those who have potential to agree on sustainable restructuring in the coming months.

The recent announcement that the bank, in partnership with the Irish Mortgage Holders Organisation and iCare Housing, has launched a mortgage-to-rent housing programme is a very positive move in this regard. It is important to highlight that all mortgage holders receive their full contractual conduct rights, regardless of the owner of the loan.

The Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 was enacted in July 2015 and is designed to protect relevant borrowers whose loans are sold on to unregulated entities. The Act introduced a regulatory regime for a new type of entity called a "credit servicing firm". This is a firm that manages or administers credit agreements, such as mortgages or other loans, on behalf of unregulated entities. Under the Act, purchasers of loan books must either be regulated by the Central Bank itself or else the loans must be serviced by a credit-servicing firm regulated by the Central Bank.

In addition, all protections enjoyed by borrowers under the CCMA will remain in place after any sale by the bank. The CCMA provides that a lender may commence legal proceedings for repossession of a borrower's primary residence only where the lender has made every reasonable effort under the CCMA to agree an alternative repayment arrangement with the borrower, and where the specific timeframes set out in the CCMA have been adhered to, or where the borrower has been classified as not co-operating and has been notified in accordance with the CCMA.

Where a loan is deemed to be unsustainable or where the borrower has refused to engage with his or her lender, cases may come into the legal system. Borrowers in this situation are strongly encouraged to seek independent financial advice from MABS and independent legal advice, if applicable. Engaging proactively and quickly gives borrowers the best chance of retaining their home. Notwithstanding the borrower protections that are currently in place, both the Taoiseach and Minister for Finance have stated they are open to considering any further measures that can be implemented in a sensible manner. While loan sales are regrettable, the Minister for Finance is conscious of the need for Permanent TSB to continue on its path to recovery. Permanent TSB plays a very important part in the Irish economy, both as a provider of retail banking services and as an employer. The bank has over 1 million customers, €21 billion of mortgage loans and €17 billion of customer deposits. In addition, the bank employs 2,500 staff.

Permanent TSB has made good progress in the past year in terms of trading and improving its financial position. This progress includes recording a profit in the first half of 2017, the first since the onset of the financial crisis. In its quarter 3 trading statement, the bank reported continued momentum in new lending, which increased by 64% year on year. This translated into an increase in the bank's residential mortgage share to 11.9% to the end of September 2017. This is up from a market share of just over 9% in the full year 2016. Other key highlights in the bank's quarter 3 trading statement includes the opening of over 30,000 current accounts, an increase of 16% year on year, and an increase on capital ratios with a fully loaded common equity tier 1, CET 1 ratio of 15.3% compared with 14.9% at 31 December 2016. As the proposed transaction is commercially sensitive, and as the Minister for Finance must be conscious of Stock Exchange disclosure rules, it would be inappropriate to provide further commentary on the details of the transaction over and above what has been disclosed by the bank at this point.