Banking Sector Regulation

Thursday, 27 March 2014

Ceisteanna (48)

Róisín Shortall

Ceist:

48. Deputy Róisín Shortall asked the Minister for Finance if his attention has been drawn to problems caused to house purchasers due to delays by banks in issuing letters of consent for the sale of houses in negative equity; his views on requiring banks to issue a consent for sale certificate prior to houses going on the market; if he will require banks to issue such certificates on a weekly or fortnightly basis, instead of having to wait for monthly bank meetings; and if he accepts that potential purchasers should be saved this often recurrent disappointment and expense in their efforts to purchase a home. [14616/14]

Amharc ar fhreagra

Freagraí scríofa

Minister for Finance

The Deputy will be aware that under the Relationship Frameworks that govern the relationship between the Minister for Finance and the State supported banks, the bank's Board and Management team retain responsibility and authority for determining the bank's strategies and commercial policies and for conducting its day-to-day operations.

The Relationship Frameworks with the banks provide that the State will not intervene in the day-to-day operations of the banks or their management decisions. These frameworks are published on the Department of Finance website.

The precise processes put in place by the State supported lenders regarding the sale of a mortgaged property is a day-to-day operational decision for the individual banks and I do not have any involvement in such decisions. However, at a general level, there is a requirement on any regulated entity to act with due skill, care and diligence in the best interests of its borrowers and to supply any necessary information to its customers in a timely manner. If a person is not satisfied with the way that a bank is handling a particular issue, the complaints resolution mechanism, as provided in the Central Bank's Consumer Protection Code, will be available to address the particular complaint.