Tuesday, 12 March 2019

Ceisteanna (108, 116)

Michael McGrath

Ceist:

108. Deputy Michael McGrath asked the Minister for Finance the views of the Central Bank on potentially expanding the Rebuilding Ireland home loan scheme; if he requested the Central Bank to provide a formal opinion on the scheme; if so, the details of the opinion; and if he will make a statement on the matter. [11790/19]

Amharc ar fhreagra

Jan O'Sullivan

Ceist:

116. Deputy Jan O'Sullivan asked the Minister for Finance if he has been in contact with the Central Bank about a review of the funding and-or the interest rate of the Rebuilding Ireland home loan scheme; and if he will make a statement on the matter. [12331/19]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I propose to take Questions Nos. 108 and 116 together.

I understand the Department of Housing, Planning and Local Government is presently carrying out an internal review of the Rebuilding Ireland Home Loan scheme. As part of this review there are discussions ongoing between the Department of Housing, Planning and Local Government and the Departments of Public Expenditure and Reform, and Finance.

To inform this review, the Central Bank will prepare a paper for the Financial Stability Group (FSG) to examine the financial stability and macro-prudential impacts of the Rebuilding Ireland Home Loan Scheme, including the potential impact on the residential property market of an extension to the scheme and the non-application of the Central Bank’s Loan-to-Income ratio for mortgage lending.

This paper will be presented to a future meeting of the FSG, which meets on a bi-monthly basis.

The Financial Stability Group (FSG) is a forum for senior officials from the Department of Finance, the Central Bank of Ireland, and the National Treasury Management Agency (NTMA) to discuss economic and financial system policies which have repercussions for financial stability

The role and responsibilities of the FSG reflect its overall objective to support optimal financial stability arrangements that allow:

- open discussion, based on effective sharing of information

- coordination of financial sector policies that could affect financial stability

- the assessment of risks, and the putting in place of appropriate contingency plans.