Robert Troy
Question:248. Deputy Robert Troy asked the Minister for Finance his plans to consider rewording the incapacitated child tax credit form (details supplied). [15740/18]
View answerTax Credits
Questions (248)
Written answers
The legislation governing entitlement to the incapacitated child tax credit is contained in section 465 of the Taxes Consolidation Act 1997, as amended.
Incapacitated Child Tax Credit can be claimed by filling in the form ICC1. The wording of this form was updated by the Revenue Commissioners in January 2018, following an internal review.
The precise nature of the issue which the Deputy wishes to raise is unclear from the details supplied. Further information has been requested from the Deputy's constituency office and I would be happy to address his query should the Deputy wish to ask this question again when such further information is available.
Question No. 249 answered with Question No. 208.
Insurance Coverage
Questions (250)
Thomas P. Broughan
Question:250. Deputy Thomas P. Broughan asked the Minister for Finance if he has raised with the insurance industry the practice of refusing car insurance cover to drivers; the number of drivers refused insurance in 2017 and to date in 2018; the reason for these refusals; and if he will make a statement on the matter. [15789/18]
View answerWritten answers
As Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. Neither I nor the Central Bank of Ireland has the power to direct insurance companies on the pricing or provision of insurance products. Indeed, the EU framework for insurance expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products. The provision of insurance cover and the price at which it is offered is a commercial matter for insurance companies and is based on an assessment of the risks they are willing to accept and adequate provisioning to meet those risks. These are considered by insurance companies on a case-by-case basis.
Motor insurers use a combination of rating factors in making their individual decisions on whether to offer cover and what terms to apply. Factors include, for example, the age and type of the vehicle, the age of the driver, the relevant driving experience, the claims record, the number of drivers and how the vehicle is used.
However, as the Deputy may be aware, under the terms of the Declined Cases Agreement (DCA), which is adhered to by all motor insurers in Ireland, the insurance market will not refuse to provide insurance to an individual seeking motor insurance if he or she has approached at least three insurers and has not been able to obtain cover from them.
I am not responsible for the operation of the DCA and therefore I do not have direct access to the number of drivers who applied through the DCA process in 2017 and 2018 to date, and certainly not the total number of drivers who were refused a quotation over the same period, as such information is not collated by any organisation.
However, in order to be as helpful as I can, my officials contacted Insurance Ireland seeking the DCA application figures. In response, Insurance Ireland provided statistics on the number of cases it dealt with in 2017 and Q1 of 2018.
The total number of DCA applications in 2017 was 1,423. This represented a drop of approximately 27% on the number of cases in 2016 (1,941). The figure for the first quarter of this year is 322, a decrease of 26, or 8%, on the corresponding period last year.
The total number of cases is broken down into various categories according to the main reason perceived by Insurance Ireland for the applicant having been declined motor insurance. In relation to 2017, for instance, the five categories accounting for the highest number of cases, in descending order, were:
- “Hackney/Taxi Drivers” – 275
- “Convictions” – 261
- “Cancelled/Non-Renewed Policies” – 260
- “Claims” – 194
- “Non-Disclosures” – 109
Other categories include: “Occupation”, “Vehicle Make/Model” and “Additional Drivers”.
In relation to these cases, Insurance Ireland has informed my officials that all applications submitted were accepted by Insurance Ireland for processing under the DCA. It has also stated that a quotation was secured for every applicant.
Finally, the Deputy should note that the Cost of Insurance Working Group, in its Report on the Cost of Motor Insurance, recommended the Declined Cases Agreement process should be made more transparent. On foot of this recommendation, Insurance Ireland submitted a report on the operation of the Agreement to my Department in July 2017. In the report, Insurance Ireland states that it “believes that the time may be correct for a review of elements” of the Agreement. My Department accepted this proposal and has since hosted two workshops with relevant stakeholders who are examining which elements of the Agreement need to be amended or refined. I understand further workshops will take place throughout 2018.
Question No. 251 answered with Question No. 240.
Stamp Duty
Questions (252)
Peter Burke
Question:252. Deputy Peter Burke asked the Minister for Finance if a person (details supplied) is entitled to consolidation relief; and if he will make a statement on the matter. [15847/18]
View answerWritten answers
I assume the Deputy is referring to the measure introduced in Finance Act 2017 to allow a farmer to claim relief from stamp duty where he or she both sells and purchases land for the purposes of consolidating an existing farm holding. This measure has not yet been commenced as it is still being considered by my Department in the context of EU State Aid requirements. Subject to commencement, the measure will apply to all qualifying transactions that took place on or after 1 January 2018, so farmers who consolidate their holdings on or after 1 January 2018, but prior to the commencement of the relief, will still be eligible.
There are a number of conditions that must be satisfied for the relief to apply. There must be both a sale and a purchase of land within a period of 24 months of each other. Where other qualifying conditions are satisfied, stamp duty is chargeable only to the extent that the value of the land that is purchased exceeds the value of the land that is sold. A reduced rate of 1% is charged on the excess, if any, of the purchase value.
An important condition for the relief is that Teagasc must issue a certificate stating that a sale and purchase (or an exchange of farmland) was made for farm consolidation purposes. This is the certificate that is currently required in relation to the capital gains tax farm consolidation relief. The criteria to be used by Teagasc for this purpose and the information to be supplied to Teagasc are contained in guidelines published by the Minister for Agriculture, Food and the Marine. Following the farm consolidation, a farmer must retain ownership of the farmland for a period of five years and must use the land for farming. Where any part of the land is disposed of before the end of this five-year holding period, the stamp duty relieved can subsequently be recovered by Revenue, or partly recovered as appropriate.
Where stamp duty in excess of 1% has already been paid on the excess of purchase value, eligible farmers may claim a refund from Revenue after the relief is commenced. A refund claim is to be made on a self-assessment basis where the qualifying conditions for the relief are satisfied.
Financial Services Regulation
Questions (253)
Willie Penrose
Question:253. Deputy Willie Penrose asked the Minister for Finance if he will liaise with the Central Bank to ensure that appropriate legislation is brought forward in order to compel vulture funds upon acquiring loan books from financial institutions to inform mortgage holders of the price paid for each loan and in the alternative the mortgage holder would be given a period of time to purchase or discharge the loan for the amount proposed to be paid for same by the vulture fund; and if he will make a statement on the matter. [15892/18]
View answerWritten answers
There is no agreement on the precise meaning of the term “vulture funds” and it has come to have pejorative connotations. I presume that the Deputy intends referring to private equity funds.
As the Deputy may be aware, the Consumer Protection (Regulation of Credit Servicing Firms) (Amendment) Bill 2018 was introduced by Deputy Michael McGrath on 21 February 2018. The Bill subsequently passed Second Stage in the Dáil on 06 March.
The Government has agreed to support the Bill and provide assistance to Deputy McGrath to develop appropriate amendments to the Bill so that it can be implemented.
It should be noted that there are a number of technical issues with the Bill which need to be resolved. My officials are engaging with the Attorney General’s Office, the Central Bank and Fianna Fáil in this regard. It is important that absolute clarity is reached about the detailed intentions of the legislation in order to assist in accurately drafting the legislation.
Question No. 254 answered with Question No. 217.
Community Banking
Questions (255)
John McGuinness
Question:255. Deputy John McGuinness asked the Minister for Finance his views on the report on the community banking; the reason for the delay in publishing the report; if the delay is being caused by a disagreement between his Department and the Department of Rural and Community Development on the content of the report; if so, the points of disagreement; if the publication of the report will be expedited; and if he will make a statement on the matter. [15926/18]
View answerWritten answers
My Department, along with the Department of Rural and Community Development, is assigned the responsibility of fulfilling the Programme for a Partnership Government commitment to "thoroughly investigate the German Sparkassen model for the development of local public banks that operate within well-defined regions".
Local public banking is where the state, or another public body, has ownership of a bank or other financial institution, as opposed to private ownership. In Germany, local public banks are called Sparkassen. Sparkassen are only permitted to operate in specific geographic regions and their lending activities is confined to this particular area. The aim and philosophy of Sparkassen is not just profit maximization but promoting and encouraging regional economic development and financial inclusion. An important part of this business model is also working closely and building relationships with local small and medium sized enterprises.
As the Deputy will be aware, officials in both departments have been working closely together to conduct a thorough investigation of local public banks in Ireland, based on the German Sparkassen model. This investigation included a consultation process with stakeholders and interested parties. Additionally, there has been substantial engagement and a number of meetings held with Irish Rural Link and the Savings Bank Foundation for International Cooperation (SBFIC), the international development wing of the Sparkassen group, on their proposal for a suggested model of local public banking in Ireland, based on the German Sparkassen system.
Following considerable analysis by officials, my colleague, the Minister for Rural and Community Development, Michael Ring T.D., and I have taken time to carefully consider the report on local public banking. I am satisfied that a thorough analysis was undertaken by officials. Consequently, we are now preparing to jointly submit this report for Government approval in the near future. Once the report has been considered and approved by Cabinet, it will then be provided to the Joint Oireachtas Committee on Finance, Public Expenditure and Reform and Taoiseach.
My Department continues to work with other Government departments to develop tailored and innovative policy initiatives that support the on-going needs of Irish SMEs and rural economic development. The Deputy may rest assured this remains a key Government priority.
Financial Services Sector
Questions (256)
Thomas P. Broughan
Question:256. Deputy Thomas P. Broughan asked the Minister for Finance his views on the regulation of personal contract plans for car purchase finance; the level of this financial debt; the role of the Central Bank in this regard; and if he will make a statement on the matter. [15946/18]
View answerWritten answers
As the Deputy will be aware the Competition and Consumer Protection Commission (CCPC) undertook the first comprehensive study of the Personal Contract Plans (PCP) market in the State. As part of its study the CCPC issued detailed questionnaires to all the financial institutions that underwrite PCP finance in the State. This allowed the CCPC to compile, for the first time, primary data relating to the number and value of PCP finance contracts issued. The report was published on Tuesday 6 March 2018 and is available at www.ccpc.ie.
The Deputy may also be aware that an Economic Letter on this area was published by the Central Bank on 28 March. This provides further comprehensive data on the PCPs market in Ireland, where at the end 2017 PCP finance accounted for 43%(€1.2 billion) of car-related bank debt. The Economic Letter is available at www.centralbank.ie .
My officials will examine these publications and give careful consideration to what actions, if any, would be appropriate and will consult with relevant stakeholders.
On the issue more generally, the Central Bank regulates financial services institutions as set out under legislation but does not regulate individual financial products. Under current legislation the CCPC has responsibility for authorising and supervising the credit intermediaries which typically sell PCP contracts to consumers, including garages and retailers.
Mortgage Arrears Rate
Questions (257)
Éamon Ó Cuív
Question:257. Deputy Éamon Ó Cuív asked the Minister for Finance the number of mortgage holders who are more than 18 months in arrears on their family homes; the steps being taken to assist these persons; and if he will make a statement on the matter. [15948/18]
View answerWritten answers
The Central Bank of Ireland release quarterly statistics on Residential Mortgages and Repossessions. The most recent mortgage arrears statistics, published on 22 March 2018 are available at https://www.centralbank.ie/docs/default-source/statistics/data-and-analysis/credit-and-banking-statistics/mortgage-arrears/residential-mortgage-arrears-and-repossessions-statistics-december-2017.pdf.
The Central Bank provides data on arrears in the following categories:
- in arrears up to 90 days,
- in arrears 91 to 180 days,
- in arrears 181 to 360 days,
- in arrears 361 to 720 days, and
- in arrears over 720 days.
The category 361 to 720 days aligns closest to the information that you are requesting and the latest statistics state that 8,019 Principal Dwelling Homes (PDH) accounts were in arrears at the end of December 2017.
Assisting those in mortgage arrears is a priority for this Government and there are a number of policies and supports in place for those in mortgage difficulties.
The Deputy will be aware that the Code of Conduct on Mortgage Arrears (CCMA) sets out statutory requirements for mortgage lenders and credit servicing firms dealing with borrowers in or facing arrears on the mortgage loan secured by their primary residence. Lenders may only commence legal proceedings for repossession of the borrower's primary residence after it follows a number of steps. The steps include:
- making every reasonable effort under the CCMA to agree an alternative restructure arrangement (ARA) with the borrower;
- time bound requirements to inform the borrower the regulated entity is not willing to offer an ARA and of his/her options;
- time bound requirements to inform a borrower, who is not willing to enter into an ARA, of his/her options; and
- a decision to classify the borrower as non-cooperating.
Lenders must ensure that the case of each borrower is individually assessed on its merits to ensure fairness. The Mortgage Arrears Resolution Process (MARP) framework sets out the steps which lenders must follow. A lender must carry out an affordability assessment by examining each case on its own merits and must base its assessment of the borrower's full circumstances including their ability to repay as determined by up to date information on a Standard Financial Statement (SFS). A lender must explore all options for alternative repayment arrangements (that they offer) in order to offer the most viable option to each borrower. The Code also requires lenders to review an alternative repayment arrangement at appropriate intervals for the type and duration of the arrangement. The lender is also obliged to carry out a review of an alternative repayment arrangement at any time, if requested by the borrower.
I am informed by the Central Bank that there is a broad range of available restructures offered and delivered by both bank and non-bank entities and there is strong evidence that both banks and non-banks look to exhaust available restructure options before moving to the legal process.
The Deputy will be aware of the Abhaile mortgage arrears resolution service, established to ensure that those either in mortgage arrears or at risk of going into mortgage arrears on their primary residence, are able to access State-funded professional legal or financial advice on their resolution options.
The aim of Abhaile is to help mortgage holders in arrears to find the best solutions and keep them, wherever possible, in their own homes. The service is proving very successful in assisting distressed borrowers, particularly those in longer term mortgage arrears. A dedicated adviser will work with borrowers in mortgage arrears and their lender to find the best solution for their situation.
If those in mortgage arrears need financial advice, they can get a free face to face meeting with an expert financial adviser. The adviser can help them to work through their financial situation and explain the options available to them to help deal with their home mortgage arrears. The expert adviser could be a MABS Money Adviser, a MABS Dedicated Mortgage Arrears adviser, a Personal Insolvency Practitioner (PIP) or an accountant.
Distressed borrowers may also need legal advice on issues related to their mortgage arrears. Under Abhaile they can have a free face-to-face meeting with a solicitor, who will explain their legal situation and advise them how best to resolve it.
If they are called to court to face repossession proceedings on their home, they will be able to meet a Duty Solicitor at the court. The Duty Solicitor may be able to speak for them in court and explain the proceedings to them.
A MABS staff member will also be present at court to help them.
A Helpline is also available Monday to Friday, and a face-to-face service which is completely free, confidential and independent is also available in more than 60 locations nationwide.
Finally, it is worth mentioning again that where a borrower actively engages with their lender it is more likely that an equitable arrangement will be to try to assist the borrower to remain in their family home. I would therefore urge borrowers in arrears, who have not already done so, to contact their lender or MABS for an independent assessment of their situation and professional advice on available resolution options.
Financial Services Regulation
Questions (258)
Michael McGrath
Question:258. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 214 of 16 January 2018, the position regarding proposals to prohibit the payment of fees, commissions or non-monetary benefits to third parties, including brokers and independent financial advisers, in relation to the provision of independent financial advice associated with the sale of certain financial products; the products that will be affected by the definition of insurance-based investment products; and if he will make a statement on the matter. [16060/18]
View answerWritten answers
As the Deputy is aware, in recent years, the European Commission has focused on Consumer Protection with regard to the provision of financial services. This began with the updating of the rules for the sale of financial instruments under Markets in Financial Instruments Directive (MiFID II) and is also a focus of the Insurance Distribution Directive (IDD). The aim of European legislation in these areas is to provide transparency and clarity to the consumer around the advice they are being given. A way of achieving this is to bring in more stringent requirements around how sellers of such products can receive fees or inducements from third parties. There is also a need to ensure a level playing field for all the providers of products, such as insurance or financial instruments, which can be interchangeable in a number of cases.
Ireland is implementing the improvements in consumer protection via the transposition of MiFID II, IDD and amendments to the Central Bank Consumer Protection Code 2012.
MiFID II, which gives protection for investors in financial instruments, such as shares, bonds or derivatives came into effect on 03 January 2018. Under the legislation, authorised investment firms are banned from accepting fees, commissions or other non-monetary benefits when giving “independent” investment advice. The exception is where the non-monetary benefit is minor and is of benefit to the quality of service that the firm provides.
Under MiFID II, I exercised the discretion to allow certain firms such as those authorised under the Investment Intermediaries Act 1995, many of whom are small brokers servicing local markets, to be exempt from the full MiFID II requirements. However, these firms must be subject to strict rules around consumer protection that are deemed “analogous” to the MiFID II rules including those around the acceptance of fees and commissions. To ensure that these firms are covered by analogous rules, the Central Bank updated its Consumer Protection Code (2012) in this area in November 2017. Under the Code, product producers must be able to demonstrate that any commission arrangements based on levels of business introduced do not impair the intermediary's duty to act in the best interests of the consumers and do not give rise to a conflict of interest between the intermediary and the consumer.
IDD replaces the Insurance Mediation Directive which currently regulates point of sale insurance products and following the Council of the European Union’s adoption of a Commission proposal must be transposed by 1 July 2018 and implemented by Member States by 1 October 2018. My Department is currently progressing the transposition of IDD and is liaising with the Office of Parliamentary Counsel and the Central Bank with a view to publishing the transposing Regulations well in advance of the deadline.
IDD contains a number of national discretions including in the area of fees, commissions or other non-monetary benefits which are open to Member States to adopt if they so wish. My Department carried out a public consultation on these discretions in April 2017 and submissions were received from Insurance Ireland, Irish Life Group and Brokers Ireland.
It should be noted that there is an overlap between IDD and MiFID II insofar as "functionally equivalent" or substitutable investment products can be sold under either Directive. Therefore, in order to ensure a level playing field for such products, I have decided to exercise part of the discretion in Article 29(3) of IDD to prohibit the acceptance and retaining of fees, commissions or non-monetary benefits from third parties in relation to the provision of independent advice for insurance-based investment products [1]. As there is no level playing field issue with insurance products in general, the discretion in Article 22(3) is not being availed of at this time, but will be considered further after the Central Bank consultation on Intermediary Inducements is completed later this year.
You should also be aware that in transposing the IDD, in the main, I have decided to avail of discretions that allow for the continuation of the current regulatory framework, rather than add to the regulatory burden.
Finally, I will further consider these discretions following the completion of the Central Bank's work in this area. In this regard, you should note that the Bank issued a Consultation Paper in November, which contains proposals to enhance the protections for consumers when seeking advice from financial intermediaries. This includes proposals for stricter rules on how financial intermediaries can be paid commission (or other inducements) by the firms whose products they sell. The proposed measures require firms to avoid conflicts of interest created by poorly designed inducement arrangements and provide greater transparency for consumers about how a financial intermediary, whose advice they are relying on, is getting paid.
The Central Bank's consultation process closed on 22 March 2018 and my officials will examine the Central Banks’ analysis once they have completed their work and in due course advise me accordingly.
[1] Insurance-based investment products are defined in the legislation as “an insurance product which offers a maturity or surrender value and where that maturity or surrender value is wholly or partially exposed, directly or indirectly, to market fluctuations” with certain exclusions such as pension products, non-life insurance products as listed in Annex I of the Solvency Directive; as well as life insurance contracts where the benefits under the contract are payable only on death or in respect of incapacity due to injury, sickness or disability.
Employment Investment Incentive Scheme
Questions (259)
Michael McGrath
Question:259. Deputy Michael McGrath asked the Minister for Finance if his attention has been drawn to the delays in the Revenue Commissioners issuing certificates for the employment investment incentive scheme to enable qualifying persons apply for refunds in respect of 2017; the steps being taken to address the issue; and if he will make a statement on the matter. [16104/18]
View answerWritten answers
I am aware of the current position regarding the delays in issuing Employment and Investment Incentive (EII) certificates to investors.
Revenue has informed me that the increased complexity of the scheme, arising from changes in Finance Act 2015 and 2017, means that each application takes longer to process than in previous years. The increased complexity also results in a large number of incomplete applications being made, which in turn increases the volume of correspondence dealt with by the processing team.
To address this, last December Revenue issued a revised application form, which clearly outlines all of the information required, and additional staff members are being assigned to the processing district. In addition, and as the Deputy may be aware, I announced that a review of EII was to be carried out this year. The review will examine a range of aspects of the incentive including whether whether the operational design of the scheme can be improved upon. I expect that the review will be completed this summer.
Tax Reliefs Availability
Questions (260)
Paul Kehoe
Question:260. Deputy Paul Kehoe asked the Minister for Finance his plans to increase the amount of country money tax relief available to persons or to alter the conditions of the relief; and if he will make a statement on the matter. [16110/18]
View answerWritten answers
I am informed by Revenue that they operate a scheme known as ‘country money’ in relation to employees in the construction sector. This arrangement is designed to reduce the administrative overhead for both employers and employees in the reimbursement of expenses.
Section 114 of the Taxes Consolidation Act 1997 provides that where an employee “is necessarily obliged to incur…expenses of travelling in the performance of the duties of that employment…there may be deducted from the emoluments to be assessed the expenses so necessarily incurred and defrayed”.
This provision allows for reimbursement by an employer, without deduction of tax, of expenses of travel, including subsistence, necessarily incurred by an employee in the course of their duties.
While this may be operated on the basis of vouched expenses, for ease of administration, Revenue allow the payment of certain set sums of money tax-free to employees in the construction industry while they are assigned to sites that are remote from their place of employment.
The employee must be employed and working at a site that is 32km or more from the employer’s base. The current rates for ‘country money’ are a maximum of €181.68 per week for more than four days or €36.34 per day for four days or less.
‘Country money’ may not be paid tax-free where the employee is provided with transport to and from the site by the employer, provided with board and lodgings by the employer or is recruited to work at one site only (also known as ‘jobbed on site’ employees). The payment of ‘country money’ does not prevent an employee from making a claim for a deduction from taxable income of the actual amount of expenses necessarily incurred by them. However, in these circumstances, any amount of ‘country money’ paid or any other reimbursement of expenses by the employer is treated as additional emoluments and taxed accordingly.
The rates of ‘country money’ are agreed between Revenue and relevant construction industry and employee representative bodies. I am advised that there are no plans to review these at present.
Stamp Duty
Questions (261)
Pearse Doherty
Question:261. Deputy Pearse Doherty asked the Minister for Finance his views on the fact that the anticipated revenue from commercial stamp duty is not materialising with regard to the latest Exchequer figures; and if he will make a statement on the matter. [16116/18]
View answerWritten answers
Pre-Budget 2018 estimates of potential Stamp Duty yield were based on a projection forward of receipts in the preceding years. This projection included factoring out a series of significant transactions in prior years that were deemed to be once off and not likely to reoccur. Estimates are therefore provided on a prudent basis but on the assumption of a continuation in the level of core (non-once off) activity of previous years. However, the property market is transaction-based and if the level or values of transactions falls significantly below that seen in previous years, then Stamp Duty tax receipts from property may be lower.
I am advised by Revenue that provisional data for the first quarter of 2018 indicate that €115 million has been collected in relation to Stamp Duty on property transactions (this covers both residential and non-residential property). This compares to €83 million in the same period of 2017. Receipts of Stamp Duty on property vary by month, as borne out by collection in previous years. While Stamp Duty receipts from property are below forecast to date in 2018, the projection is for the full year and given the nature and timing of property receipts, it is too early to reach any conclusion regarding full year collection.
Banking Sector
Questions (262)
Pearse Doherty
Question:262. Deputy Pearse Doherty asked the Minister for Finance the expenditure on public relations firms or media consultants for each of the State backed banks in each of the past five years, by firms, advisers and consultants; and if he will make a statement on the matter. [16117/18]
View answerWritten answers
This information is not held by my Department but officials in the Department of Finance have received the following responses from the banks in relation to the Deputy's question:
AIB:
“In line with normal practice and for commercially sensitive reasons, AIB does not publicly disclose the details of contracts with individual external service providers. The bank manages its public relations consultancy fees within its commercial business requirements and operating costs.”
PTSB:
“Except where required by law or regulation, and in line with how it manages its relationships with its other third-party service providers, the bank does not disclose the identity of firms or consultants engaged to work with the bank or the terms of such work as this information is deemed commercially sensitive.”
Banking Sector
Questions (263)
Pearse Doherty
Question:263. Deputy Pearse Doherty asked the Minister for Finance the number of meetings held by the Central Bank and by each State backed bank with the ECB or a branch of the ECB such as the Single Supervisory Mechanism in the past 24 months at which the issue of non-performing loans was discussed; and if he will make a statement on the matter. [16118/18]
View answerWritten answers
As the Deputy is aware non-performing loans (NPLs) remain at an elevated level across the European banking system and addressing this issue is one of the key priorities for the Single Supervisory Mechanism (SSM). The reduction of NPLs is also being given high priority at EU level with the Commission announcing their "Action Plan to Tackle Non-Performing Loans in Europe" in July 2017. The action plan calls upon various institutions including the Commission to take appropriate measures to further address the challenges of high NPL ratios in Europe. In this regard there is ongoing interaction between the State backed banks and their regulator.
For clarity the Central Bank of Ireland (CBI) forms part of the Euro-system and SSM and delivers on its regulatory mandate and obligations with respect to significant institutions through the operation of Joint Supervisory Teams comprised of staff from both the CBI and ECB.
AIB have provided me with the following response:
"The Joint Supervisory Team (JST) in its role as prudential regulator under the Single Supervisory Mechanism, conducts a number of regular meetings with the AIB senior management team
and executives across the calendar year. These meetings discuss a range of topics including non-performing loans (NPLs)."
PTSB have provided me with the following response:
" Banks supervised by the SSM or CBI have regular engagement and interaction on multiple levels as part of their ongoing regulatory oversight. There are a number of contacts at various levels over each month, in person, by phone and in correspondence. This would cover the full range of activities within each supervised bank including NPLs. The information requested is not tracked at the level requested; however the bank can confirm that the issue of NPLs is discussed very regularly between the bank and its supervisor."