Written answers

Thursday, 12 December 2013

Photo of Lucinda CreightonLucinda Creighton (Dublin South East, Independent)
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59. To ask the Minister for Finance his views on the latest developments of multiple domestic Irish Banks restarting buy to let mortgage lending including a new non-banking firm (details supplied) entering the market; if he is monitoring the extent to which these mortgages are being loaned geographically in Ireland and that there is no disproportionate concentration of lending into the rising Dublin housing market; and if he will make a statement on the matter. [53623/13]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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As the Deputy may be aware, there are signs of rising demand for rental properties through increased rents, in some urban centres. Increased lending in the buy to let sector where the business case is evident can address a particular problem and help stabilise rents.

The Central Bank, as part of its regulatory function will have a key role in monitoring the activities and attendant risks in this area.

Photo of Lucinda CreightonLucinda Creighton (Dublin South East, Independent)
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60. To ask the Minister for Finance if he is concerned about the decision of a company (details supplied) to renege on its original plan to offer up to €300 million in new Irish mortgages; and if he will make a statement on the matter. [53624/13]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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In the first instance, as the Deputy can appreciate, in relation to the company referred to and indeed any company considering entering or expanding in the Irish market, this represents a commercial decision for the company involved.

Mortgage lending decisions must be undertaken on a sustainable and prudential basis by financial institutions and conform fully to the regulatory requirements, both in relation to the financial institution itself, and also with regard to the safeguarding of the borrower's interests. The Central Bank has advised me that it does not comment on commercial decisions or set commercial policy of individual firms. In a supervisory capacity, the Central Bank oversees and reviews bank practices and regulatory adherence.

Government policy is to promote competition in the banking area as this provides choice and options to the consumer and businesses.

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