Tuesday, 26 November 2019

Ceisteanna (159)

Colm Brophy


159. Deputy Colm Brophy asked the Minister for Finance the powers he has to direct the Central Bank to change or modify its macroprudential rules. [48600/19]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I assume the Deputy is specifically referring to the Central Bank macro prudential rules on residential mortgage lending. 

These mortgage lending measures have been put in place by the Central Bank by way of regulations made by the under section 48 of the Central Bank (Supervision and Enforcement) Act 2013.  While the 2013 Act requires the Bank to consult me before making any such regulation (including any amending regulation), the Central Bank is nevertheless the statutory authority for the making of these regulations and I do not have any authority to direct the Bank to change or otherwise modify regulations it makes under that statutory function.

In this context, the Deputy may wish to note that in a recent speech the new Governor, Gabriel Makhlouf, indicated that the macro prudential mortgage measures are now a permanent feature of the mortgage market and that it is also a core component of the Bank's overall macro prudential toolkit.  The Central Bank has committed itself to reviewing the calibration of the measures on an annual basis, to ensure they continue to meet their stated objectives of strengthening bank and borrower resilience and avoiding a damaging credit-house price spiral.  I am advised that the outcome of the 2019 mortgage measures review can be expected from the Bank in early December.