John McGuinness (Carlow-Kilkenny, Fianna Fail)
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Question 40: To ask the Minister for Finance his views on whether domestic banks are responding adequately to the demand credit from first time house buyers; and if he will make a statement on the matter. [25599/12]

Michael Noonan (Limerick City, Fine Gael)
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The Deputy will appreciate that the decision on whether or not to grant individual mortgages must remain a commercial decision for individual lending institutions. It is important that each lending institution is allowed to assess properly and independently the individual risks that it is considering accepting in granting mortgage finance. It is in the general interest that mortgage lending must be undertaken on a sustainable and prudential basis by financial institutions and conform fully with regulatory requirements both in relation to the financial institution itself and also the safeguarding of the consumer's interests. I should also stress that the Relationship Frameworks with the banks provide that the State will not intervene in the day-to-day operations of the banks or their management decisions including with respect to pricing and lending decisions. These frameworks are published on my Department's website at http://banking.finance.gov.ie/presentations-and-latest-documents/.