Dáil Éireann Debate, Tuesday - 17 April 2018
263. Deputy Pearse Doherty asked the Minister for Finance the number of meetings held by the Central Bank and by each State backed bank with the ECB or a branch of the ECB such as the Single Supervisory Mechanism in the past 24 months at which the issue of non-performing loans was discussed; and if he will make a statement on the matter. [16118/18]
Amharc ar fhreagraAs the Deputy is aware non-performing loans (NPLs) remain at an elevated level across the European banking system and addressing this issue is one of the key priorities for the Single Supervisory Mechanism (SSM). The reduction of NPLs is also being given high priority at EU level with the Commission announcing their "Action Plan to Tackle Non-Performing Loans in Europe" in July 2017. The action plan calls upon various institutions including the Commission to take appropriate measures to further address the challenges of high NPL ratios in Europe. In this regard there is ongoing interaction between the State backed banks and their regulator.
For clarity the Central Bank of Ireland (CBI) forms part of the Euro-system and SSM and delivers on its regulatory mandate and obligations with respect to significant institutions through the operation of Joint Supervisory Teams comprised of staff from both the CBI and ECB.
AIB have provided me with the following response:
"The Joint Supervisory Team (JST) in its role as prudential regulator under the Single Supervisory Mechanism, conducts a number of regular meetings with the AIB senior management team
and executives across the calendar year. These meetings discuss a range of topics including non-performing loans (NPLs)."
PTSB have provided me with the following response:
" Banks supervised by the SSM or CBI have regular engagement and interaction on multiple levels as part of their ongoing regulatory oversight. There are a number of contacts at various levels over each month, in person, by phone and in correspondence. This would cover the full range of activities within each supervised bank including NPLs. The information requested is not tracked at the level requested; however the bank can confirm that the issue of NPLs is discussed very regularly between the bank and its supervisor."
