Mortgage Data

Dáil Éireann Debate, Tuesday - 25 March 2014

Tuesday, 25 March 2014

Questions (229)

Stephen Donnelly

Question:

229. Deputy Stephen S. Donnelly asked the Minister for Finance following the recent publication of mortgage approval data by the Irish Banking Federation which showed that there were 1,587 approvals in January 2014, and following the publication on 3 March 2014 by the Bank of England in the UK of its monthly money and credit report which showed that there were 76,947 approvals in the UK in the same month, his views on whether the Irish banking system, over which he operates significant direct control via his stakes in the banks and his Department’s banking unit, is failing to provide a mortgage loans service to meet the needs of citizens in the State; and if he will make a statement on the matter. [13413/14]

Written answers

Minister for Finance

As the Deputy may be aware, lending institutions in Ireland, including those in which the State has a significant shareholding, are independent commercial entities and I do not interfere in the specific decisions of banks regarding their lending decisions.

Mortgage lending decisions must be undertaken on a sustainable and prudential basis by financial institutions and conform fully with the regulatory requirements, both in relation to the financial institution itself, and also with regard to the safeguarding of the borrower's interests.

I have been informed by the Irish Banking Federation that the figure of 1,587 approvals represents an increase of 10.8% compared to the same time period last year.  However, it should be noted that even though the new mortgage lending market continues to improve, this improvement is coming off a low base.  Government policy in this area is to promote competition in banking as this provides choice to the consumer and business while reducing concentration of risk.