Séamus Healy (Tipperary, Workers and Unemployed Action Group)
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175. To ask the Minister for Finance if he will insist that a bank and its subsidiary (details supplied) which are in majority State ownership desist from seeking repossession of family homes through the courts and withdraw all such existing applications before the courts; and in the event of the bank and its subsidiary refusing to comply, if he will call a special general meeting of shareholders and use his majority share holding to dismiss and replace the directors who refuse to comply with his instruction. [16000/16]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy will be aware, I have no role in the day-to-day running of the banks in which the State is a shareholder. These institutions are run on an independent and commercial basis and the details of the formal relationship between my Department and these institutions are set out in the respective Relationship Framework Agreements, which can be found via the following links.

AIB:

PTSB:

In relation to the individual institutions referred to in "details supplied" Permanent TSB, Allied Irish Banks and its subsidiary EBS:

AIB and Permanent TSB have informed me that they prioritise keeping customers in their homes. Repossession is a last resort. Repossessions of Home Loans are not frequent amounting to 183 and 118 for AIB and Permanent TSB respectively in 2015.  In comparison AIB and Permanent tsb have entered formal forbearance measures in respect of 29,514 and 28,532 Home Loans respectively at December 2015.

While there are some differences between the banks referred to, their processes are similar.

In cases where customers do not meaningfully engage or do not engage at all with the bank, reject the offer of a sustainable mortgage restructuring solution or do not prioritise their mortgage payment, both banks are likely to pursue enforcement through the court process.

It is important to note that the initiation of legal proceedings does not necessarily result in repossession and both banks seek to engage constructively with borrowers at all times.Both banks offer a wide range of solutions and operate multiple engagement channels that facilitate the maximum possible levels of engagement with customers in difficulty.

Within the Programme for Government there are several policy proposals detailed which are being worked on at present. The objective of these proposals is to accelerate the restructuring of mortgage arrears cases and keep families in their homes in so far as possible.