Vol. 488 No. 1
81 Mr. Hayes asked the Minister for Finance if he has satisfied himself that lending institutions in the State are operating to prudent guidelines in the granting of home mortgages, particularly in relation to second or investment properties. [5599/98]
In the first instance, I have no direct statutory responsibility in relation to the extension of credit by individual credit institutions to individual consumers. However, I have been advised by the Central Bank that it continues to monitor the guidelines applied by the credit institutions in lending for house purchase, including second or investment property, and is satisfied that these are generally prudent. The bank has repeatedly warned the institutions of the dangers inherent in high rates of credit growth and any relaxation of lending standards. In addition, the bank would not encourage 100 per cent mortgages and the credit institutions have been so advised.
