Written answers

Wednesday, 6 April 2016

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)
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160. To ask the Minister for Finance if he will provide for each State-owned or part-owned bank, the value of approved mortgages that are outside the normal 80% cap for non-first time buyers or the equivalent cap for first time buyers, under the Central Bank's macro prudential lending rules and to show this figure as a percentage of the total approved mortgages also, since the rules came into operation and as a figure for 2016 mortgages to date in tabular form. [6152/16]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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As the Deputy will be aware, the Central Bank's macro prudential limits on mortgage lending came into effect on 9th February 2015. The policy sets restrictions on the loan-to-value (LTV) and Loan-to-Income (LTI) ratios on products that can be offered by mortgage providers. There are a number of exemptions allowed for within the CBI guidelines, for example mortgage switchers or forbearance cases. The macro prudential limits on mortgage lending are designed, implemented and monitored by the Central Bank in its role as regulator of the Irish banking sector, and therefore fall outside of my remit as Minister for Finance.

However, the banks in which the State has a shareholding have informed me of the following:

AIB approved c. €2.0bn of mortgages in Ireland during 2015 and had drawdowns of c. €1.7bn. The bank fully complied with LTV and Loan-to-Income limits set by the Central Bank of Ireland during the year to 31 December 2015. All disclosures in relation to AIB's mortgage portfolios are contained in the Risk Management section of the bank's 2015 Annual Financial Report.

The PTSB Group had €459m of new mortgage lending in 2015, as set out on page 8 of the Group's 2015 Financial Statements. The Group was compliant with the Central Bank of Ireland's macro prudential restrictions in the period up to December 2015. Circa 11% of the qualifying loans were issued as LTV exemptions under the CBI macro prudential rules.

Bank of Ireland had new mortgage lending volumes of €1.4bn in 2015 in the Republic of Ireland. All required disclosures related to Bank of Ireland's mortgage portfolio can be found in their Annual Report for year end 31 December 2015.

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