Dáil Éireann Debate, Tuesday - 27 March 2018
96. Deputy Joan Burton asked the Minister for Finance the discussions he has had with financial institutions off-loading their description of distressed mortgage loans; his views on the decision by a bank (details supplied) to not appear before the Joint Committee on Finance, Public Expenditure and Reform, and Taoiseach on 27 February 2018; and if he will make a statement on the matter. [13672/18]
Amharc ar fhreagra175. Deputy Joan Burton asked the Minister for Finance the discussions he has had with financial institutions regarding-off loading their description of distressed mortgage loans; his views on the decision by a bank (details supplied) to not appear before the Joint Committee on Finance, Public Expenditure and Reform, and Taoiseach on 27 February 2018; and if he will make a statement on the matter. [13665/18]
Amharc ar fhreagraI propose to take Questions Nos. 96 and 175 together.
As part of their regular engagement with the banks in which the State has a shareholding, officials in my Department discuss a wide range of topics, including loan sales. For example, in the case of Project Glas, the recently announced project announced by PTSB to sell a portfolio of NPLs, officials were first briefed by the bank on the timing of the sale, and potential composition of the portfolio, in the week commencing 15th January. Officials in turn, briefed me on the matter on 19th January.
In addition to the regular engagement Department officials have with the banks, I myself have met recently with senior officials of some of the Irish retail domestic banks and intend holding similar meetings with the remaining banks in due course. At these meetings, loan sales were discussed, where relevant. The Deputy will be aware in this regard, that it is not appropriate for me to put any more facts into the public domain, over and above what the banks themselves have disclosed, as I must respect commercial confidentiality and stock exchange disclosure rules.
For clarity, I should highlight for the Deputy that I cannot stop loan sales, even by the banks in which the State has a shareholding. These decisions are the responsibility of the Board and management of the banks which must be run on an independent and commercial basis. The banks’ independence is protected by Relationship Frameworks, which are legally binding documents that I cannot change unilaterally. These frameworks were insisted upon by the European Commission to protect competition in the Irish market. Loan sales do not require my consent, though the banks are required to formally consult with me. In the case of the current PTSB loan sale process, the bank has not yet consulted with me but will do so in due course.
The Deputy has asked me to comment on my views on the decision by PTSB not to appear before the Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach on 27th February. In its response to the Committee, the bank highlighted that it would not be appropriate for its executives to attend a meeting on the original date proposed, as the bank was in a "closed period" ahead of the publication of its annual results on 14th March. However, the bank did state it was agreeable to meeting with the Committee on an alternative date and this meeting subsequently took place on 22nd March. Under the circumstances, my view is that the bank’s approach to the Committee’s request for a meeting was not unreasonable.
