Catherine Murphy (Kildare North, Social Democrats)
Link to this: Individually | In context | Oireachtas source

107. To ask the Minister for Finance the level of advance knowledge he had of the plans by a bank (details supplied) to sell a loanbook; if he has met and or communicated with other banks regarding the sale of loanbooks and bundled mortgages to date in 2018; and if he will make a statement on the matter. [35750/18]

Catherine Murphy (Kildare North, Social Democrats)
Link to this: Individually | In context | Oireachtas source

142. To ask the Minister for Finance the level of advance knowledge he had of the plans by a bank (details supplied) to sell a loanbook to companies; if he has met and or communicated with other banks regarding the sale of loanbooks and bundles mortgages in 2017 or to date in 2018; and if he will make a statement on the matter. [36326/18]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 107 and 142 together.

In the first instance, I should highlight for the Deputy that in my role as Minister for Finance, I cannot stop loan sales even by the banks in which the State has a shareholding. These decisions are the responsibility of the Board and management of the banks which must be run on an independent and commercial basis. The banks’ independence is protected by Relationship Frameworks which are legally binding documents which I cannot change unilaterally. These frameworks, which are publicly available, were insisted upon by the European Commission to protect competition in the Irish market.

The interaction between both Department officials and myself and senior management of the banks in which the State has an investment takes place on a regular basis. As part of their ongoing engagement with the banks, Department officials meet with bank management during which a wide range of topics are discussed, including loan sales where relevant. Subsequent to these meetings, Department officials brief me as required. In addition to these meetings, I meet directly with the CEOs of each of the banks from time to time and loan sales would be included as an agenda item again where relevant.

In relation specifically to the recently announced loan sale by PTSB, Project Glas, I was first informed by Department officials of the proposed transaction on Friday 19th January. Department officials were first briefed on the timing of the sale and potential composition of the portfolio, earlier that week.

Notwithstanding a loan sale, I wish to highlight that the protections for borrowers in place before the sale remain unchanged. In this regard, it is important to note that there are no changes to the rights of a borrower whose loan is sold by a bank. All terms and conditions attached to their mortgage contract remain in place. I should also highlight that regardless of the protections that are currently in place for mortgage holders, I am prepared to engage with Deputies from other parties in an effort to see if these protections can be strengthened further in a sensible manner. This commitment has been demonstrated recently by the Government’s support for the Bill introduced by Deputy Michael McGrath, T.D., which seeks to regulate the purchasers of mortgage loans.

In addition, earlier this year I asked the Central Bank to carry out a review of the CCMA to ensure it remains as effective as possible. I have asked for the report to be completed as soon as is practicable. The Central Bank has stated that it is their intention to deliver the report by the end of September 2018. If as a result of this review the CCMA requires amendment, a full public consultation process would be required in line with normal guidelines.