Michael Healy-Rae (Kerry South, Independent)
Link to this: Individually | In context | Oireachtas source

105. To ask the Minister for Finance his views on loans (details supplied); and if he will make a statement on the matter. [23506/13]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I note the Deputy’s concerns regarding the checks being made by the banks prior to granting credit to individuals. Affordability is the key test in terms of meeting mortgage commitments and against the current backdrop of high levels of mortgage arrears, prudential policy by the financial institutions has led to more extensive analysis of present and prospective ability of by individuals and businesses to meet with credit commitments. It is not in the interest of the banks or the individual for finance to be provided unless the individual has the capacity to meet the interest payments and repay the sum borrowed, however credit policy would be expected to take account of the ability to repay against a backdrop of evolving circumstances. The interaction which the Government has with the banks is governed by the Relationship Frameworks, precluding the State from intervening 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/.