Thursday, 8 March 2018

Questions (41)

Michael McGrath

Question:

41. Deputy Michael McGrath asked the Minister for Finance if the European Central Bank or the European Banking Authority has guidance on the sale of non-performing loans to third party vendors; if he has brought the issue of the sale of non-performing loans to unregulated private equity funds to the attention of the ECB or the EBA; and if he will make a statement on the matter. [10949/18]

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Written answers (Question to Finance)

The European Council Action Plan published in July 2017 invited the European Commission to develop by summer 2018, a European approach to foster the development of secondary markets for NPLs, in particular to remove impediments to the transfer of NPLs by banks to non-banks and to their ownership by non-banks, while safeguarding consumers' rights, as well as to simplify and potentially harmonise the licensing requirements for third-party loan servicers and to take legislative initiative in this respect, as appropriate. 

I am expecting a legislative proposal from the European Commission in March 2018 which will include a proposal for licensing requirements for third-party credit servicers across the European Union.

Officials from my department have been active contributors to the discussions on NPLs, including on credit servicers, through its involvement in the European Council’s Financial Services Committee subgroup on NPLs and the more recent European Commission Expert Group on NPLs. The ECB and EBA were involved in both of these groups.