Dáil Éireann Debate, Wednesday - 1 February 2023
95. Deputy Ged Nash asked the Minister for Finance if correspondence from his Department to the Central Bank to which a newspaper article refers (details supplied) will be provided to this Deputy; and if he will make a statement on the matter. [5127/23]
Amharc ar fhreagraMy Department maintains ongoing and close contact with the Central Bank on matters of mutual interest, including in relation to mortgages.
As the Deputy is aware, the Report of the Retail Banking Review was published in November 2022. One of its recommendations referred to the findings of the recent IMF Financial System Assessment of Ireland and the need to continue to address the issue of mortgage arrears.
In order to advance this particular recommendation, on 16 January 2023, my Department wrote to the Central Bank (and to other relevant State bodies) to obtain information and their views on addressing mortgage arrears.
The letter also referred to the changing interest rate environment and how this is impacting on mortgage interest rates in both banks and non-banks and the measures which can be advanced to protect consumers.
As the Deputy may be aware, the Governor of the Central Bank, in his online blog of 30 January 2023, has provided information on the composition of the mortgage market in respect of both banks and non-banks and has confirmed that the full consumer protection framework, which protects borrowers from the beginning to the end of the mortgage life cycle, applies irrespective of whether a mortgage loan is held by a bank or non-bank.
As regulator, the Central Bank continues to engage with regulated entities. The Governor has also indicated, whether due to interest rate increases or other factors such as the increase in the cost of living, lenders and servicers must be able to anticipate and identify cases of pre-arrears and draw up and implement procedures for dealing with mortgage borrowers who are experiencing repayment difficulty.
My Department will continue to work closely with the Central Bank on this matter.
