Neale Richmond (Dublin Rathdown, Fine Gael)
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255. To ask the Minister for Finance the role of the Central Bank in allowing crypto-currency exchange (details supplied) back into the single euro payments area; and if he will make a statement on the matter. [6303/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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It should be noted that the approval or refusal of applications made by any firm to the Central Bank of Ireland is not a matter which the Minister or the Department of Finance has any role or involvement in.

I am also informed by the Central Bank of Ireland that it does not regulate the firm in question.

While the Central Bank cannot comment on individual firms it is the responsibility of each firm to ensure it has the right authorisation in place prior to providing regulated financial services in Ireland.

Detail of the firms regulated by the Central Bank can be found on the public registers. The Central Bank does not have a role in regulating cryptocurrencies.

Additional information relating to the regulation of providers of services relating to virtual assets can be found on the Central Bank website.

Cathal Crowe (Clare, Fianna Fail)
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256. To ask the Minister for Finance if his Department will liaise with the Central Bank concerning rules on mortgage drawdown for those on the employment wage subsidy scheme. [6419/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Central Bank has indicated that it expects all regulated firms to take a consumer-focused approach and to act in their customers’ best interests at all times, including during the COVID-19 pandemic.

In addition, since the COVID-19 situation first arose, I have maintained contact with the Banking and Payments Federation of Ireland (BPFI) and banks on the measures the sector has put in place to assist their customers who are economically impacted by the pandemic. In relation to the particular issue of new mortgage lending, the main retail banks previously confirmed that they are considering mortgage applications and mortgage drawdowns in relation to their customers who were on the Employment Wage Subsidy Scheme (EWSS) on a case by case basis and that they are taking a fair and balanced approach.

There are, however, certain consumer protection requirements which govern the provision of mortgage credit to consumers. For example, the European Union (Consumer Mortgage Credit Agreements) Regulations 2016 (CMCAR) provide that, before concluding a mortgage credit agreement, a Central Bank regulated mortgage lender must make a thorough assessment of the consumer’s creditworthiness with a view to verifying the prospect of the consumer being able to meet his or her obligations under the credit agreement. The CMCAR further provides that a lender should only make credit available to a consumer where the result of the creditworthiness assessment indicates that the consumer’s obligations resulting from the credit agreement are likely to be met in the manner required under that agreement. The assessment of creditworthiness must be carried out on the basis of information on the consumer’s income and expenses and other financial and economic circumstances which are necessary, sufficient and proportionate.

In addition, the Central Bank’s Consumer Protection Code 2012 imposes ‘Knowing the Consumer and Suitability’ requirements on regulated lenders. Under these requirements, lenders are required to assess affordability of credit and the suitability of a product or service based on the individual circumstances of each borrower. The Code specifies that the affordability assessment must include consideration of the information gathered on the borrower’s personal circumstances and financial situation. Furthermore, where a lender refuses a mortgage application, the CMCAR requires that the lender must inform the consumer without delay of the refusal. In addition, the Code requires that the lender must clearly outline to the consumer the reasons why the credit was not approved, and provide these reasons on paper if requested.

Within this regulatory framework, the decision to grant or refuse an application for mortgage credit remains a commercial matter for the individual lender. Lenders continue to process mortgage applications and have supports in place to assist customers impacted by COVID-19.

If a mortgage applicant is not satisfied with how a regulated firm is dealing with them in relation to an application for a mortgage or the drawn down of a mortgage, or they believe that the regulated firm is not following the requirements of the Central Bank’s codes and regulations or other financial services law, they should make a complaint directly to the regulated firm. If the mortgage applicant is still not satisfied with the response from the regulated firm, he or she can refer the complaint to the statutory Financial Services and Pensions Ombudsman.