As advised in answer to the Deputy's previous PQ, the Central Bank's macro-prudential limits on mortgage lending came into effect on 9th February 2015. The policy sets restrictions on the loan-to-value (LTV) and Loan-to-Income (LTI) ratios on products that can be offered by mortgage providers. There are a number of exemptions allowed for within the CBI guidelines, for example mortgage switchers or forbearance cases.
I must re-iterate that the macro-prudential limits on mortgage lending are designed, implemented and monitored by the Central Bank in its role as regulator of the Irish banking sector, and therefore fall outside of my remit as Minister for Finance. Moreover, the Central Bank does not provide prudential lending disclosures on an industry-wide or institutional basis and there is no regulatory requirement for AIB to publicly disclose the value of approved mortgages that are exceptions to the macro-prudential limits. My role as Minister of Finance, as set out in the Relationship Framework Agreements between the Minister and the banks in which the State is a shareholder, does not involve me in the relationship between the banks and their regulator. The Relationship Framework Agreement for AIB can be found here: http://finance.gov.ie/sites/default/files/Allied-Irish-Banks1.pdf.
Nonetheless, I have received assurances from AIB that the bank complied fully with Loan-to-Value (LTV) and Loan-to-Income (LTI) limits as set by the Central Bank of Ireland during the year to 31st December 2015, and that AIB continues to operate within the constraints set by its regulator.
