Thursday, 2 June 2016

Ceisteanna (133)

Thomas P. Broughan

Ceist:

133. Deputy Thomas P. Broughan asked the Minister for Finance his further contacts with the Governor of the Central Bank regarding guidelines on mortgages for first-time buyers given the onerous nature of these guidelines for families urgently needing to purchase a home; and if he will make a statement on the matter. [14072/16]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

Both I and my Department maintain close and on-going contacts with the Governor and the staff of the Central Bank regarding all matters of mutual interest.  

In relation to the up-coming review of the macro prudential measurers for residential mortgage lending, the Central Bank has informed me that this will take place later this year with publication expected in November. The Central Bank has indicated that, while the general framework of mortgage rules is intended to be a permanent feature, arising from this forthcoming review the calibration of these rules can be tightened, loosened or left unchanged in response to its analysis of the operation of these rules from inception through summer 2016. However, it has cautioned that, given the value of a stable rules-based system, any changes to the existing measures will require a high evidence threshold.  As part of the review process, the Central Bank has indicated that it will invite written public submissions that provide evidence-based analyses of the impact of the rules and that details on this process will be provided in advance of the submission period.  The macro prudential regulations were put in place under the provisions of section 48 of the Central Bank (Supervision and Enforcement) Act 2013 and that Act requires the Central Bank to formally consult with me, as Minister for Finance, on any new regulation it proposes to put in place under that section including in relation to the mortgage lending macro prudential measures.