Dáil Éireann Debate, Tuesday - 24 July 2018
198. Deputy Michael McGrath asked the Minister for Finance if the current reporting exemptions for social finance providers, that is, charities, will exist under the markets in financial instruments Bill; if such an exemption is not in place, if he will insert such an exemption; the potential obstacles for inserting such exemptions; and if he will make a statement on the matter. [33014/18]
Amharc ar fhreagraI understand that the question relates to the reporting requirements to the Central Credit Register (CCR), as provided for in the Credit Reporting Act 2013, and if I will include an amendment to that Act in the Markets in Financial Instruments Bill 2018 in order exclude "social finance providers" from these CCR reporting requirements.
The CCR was established by the Central Bank of Ireland under the Credit Reporting Act and it is being implemented on a phased basis. Phase 1 is now complete and credit reports covering credit cards, mortgages, personal loans and overdraft facilities provided to consumers are now available for lenders and borrowers. Phase 2 covers lending to sole traders, partnerships, clubs and associations along with incorporated entities. This phase commenced on 30 March 2018, and lenders have until 30 September 2018 to submit information on their loans, with all information backdated to 30 March 2018.
The purpose of the CCR is to capture data on the majority of loans and credit applications in the economy so that credit providers will have access to the most comprehensive, accurate and up to-date information on a borrower's total exposure when considering an application for credit. Therefore, the CCR will contribute to overall financial stability and consumer protection by:
- providing lenders with a better analysis of borrowers’ creditworthiness;
- giving information to borrowers on their financial profile;
- giving the Central Bank a better insight into financial markets; and
- supporting the Central Bank’s role of supervising the financial sector and ensuring inancial stability.
The provisions of the Credit Reporting Act apply to all lenders that fall within the scope of the Act and the particular regulatory status of an individual lender is not a relevant factor in that context. Accordingly, there are institutions outside the regulatory remit of the Central Bank which nevertheless will fall within the scope of the Credit Reporting Act and accordingly will have to comply with the reporting and other requirements of that Act. The exclusion of certain lenders or certain classes of lenders would have the effect of diluting the comprehensive nature of the CCR and the value of the data held by the CCR. The effect of such an exclusion would be that certain types of loans are not reported and consequently such loans would not be visible to other lenders and emerging risk concentrations may not be fully understood. As such, it could restrict the achievement of the overall objectives of the CCR.
In the context of providing for a comprehensive CCR, as the Deputy is aware, the amendment to the Credit Reporting Act contained in the Markets in Financial Instruments Bill 2018 (which is currently at Dáil report stage) is solely intended to ensure that hire purchase and similar types of credit agreement will fall within the scope of the CCR. I have no plans to propose any further amendment to the Credit Reporting Act in that Bill.
