Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

89. To ask the Minister for Finance if AIB has sought his views on a full disposal of any part of its mortgage loan book; his views on such a course of action; and if he will make a statement on the matter. [8843/14]

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

In the Relationship Framework with AIB, it is recognised that the bank remains a separate economic unit with independent powers of decision and that its Board and management team retain responsibility and authority for determining AIB's strategy and commercial policies and conducting its day-to-day operations.

However under Clause 11 of this framework, AIB would be obliged to consult with me if they were proposing a disposal of a loan/loans for an amount in excess of €100 million. 

Should I be consulted on the sale of any part of the mortgage loan book in the future I would carefully consider the matter based on the facts including the impact on profit, capital and funding in AIB.

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

90. To ask the Minister for Finance if Permanent TSB has sought his views on a full disposal of any part of its mortgage loan book; his views on such a course of action; and if he will make a statement on the matter. [8844/14]

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

As part of discussions surrounding the Central Bank's Prudential Liquidity Assessment Review (PLAR) issued in March 2011, which identified several loan books for deleverage, and the preparation of a restructuring plan, officials from my department have had ongoing engagement with Permanent TSB (PTSB) regarding the sale of loan books, including mortgage loan books.

I have been informed by PTSB that a very small number of mortgage loans were sold to a bank as part of the sale of Permanent TSB Finance in December 2012 and the protections contained in the CCMA continued to apply to these customers.  

Under Clause 11 of the Relationship Framework in operation PTSB would be obliged to consult with me if they were proposing a disposal of a loan/loans for an amount in excess of €50 million.   In the Relationship Framework it is recognised that PTSB remains a separate economic unit with independent powers of decision and that its Board and management team retain responsibility and authority for determining PTSB's strategy and commercial policies and conducting its day-to-day operations

Should I be consulted on the sale of any part of the mortgage loan book in the future I will carefully consider the matter based on the facts and in particular the impact on PTSB's profit, capital and funding.  

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

91. To ask the Minister for Finance if he has made representations to the banks to offer flexibility in repayment schedules for businesses and customers whose livelihood was impacted by recent severe flooding; and if he will make a statement on the matter. [8845/14]

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

My officials are in regular contact with the banks on various matters. Decisions in relation to repayment schedules for  business or personal customers are operational matters for the management and boards of the banks concerned.

However, I welcome recent announcements by certain banks that they have decided to make available additional funding to people who have been affected by the recent inclement weather.