Snippet data - viewing only, no editing possible


Label

Field name

Field value


Sitting_Date

02/14/2018 12:00:00 AM


Sitting_Forum


Snippet Ref No

SnippetRefNo

NN00400

Selected Quill

SnippetType

1

Saved Quill

SnippetType_C4D


Selected Quill

SnippetType_1

1

Speaker Name

IndxSpeakerName

Burton, Joan

Business Category

IndxMainHeadCat

Bills

Sub Category

IndxSubTopic

Central Bank (Amendment) Bill 2018

Topic

IndxQHeadTopic

Second Stage

See Also

SeeAlso


Part1

TitlePart1


Part2

TitlePart2


Part3

TitlePart3


Volume

VolumeNo

965

Book No

BookNo

5

Pdf Ref

PdfPageRef

618

Default Business Index

IndexViewCategoryDefault


3 Part Title Business Index

IndexViewCategoryTitle


Default Topic Index

IndexViewCategoryDefaultSpeaker

Central Bank (Amendment) Bill 2018\Second Stage
Bills\Central Bank (Amendment) Bill 2018\Second Stage

3 Part Topic Index

IndexViewCategoryTitleSpeaker


Motion Code

MotionCode


Motion Title

MotionTitle


Stage

MotionStage


Amendment No

MotionAmendmentNo


Bill Code

BillCode

BPM2

Bill Title

BillTitle

Central Bank (Amendment) Bill 2018

Stage

BillStage

Second Stage [Private Members]

Section

BillSection


Statement Code

StatementCode


Statement Title

StatementTitle


Stage

StatementStage


Hour Indicator

HourIndicator

Not applicable

Procedural Instruction

Procedural_Instruction

No

Debate Adjourned

DebateAdjourned

No

Question Askee

QAskee


Question Asker

QAsker


Question Department

QDept


Question ID

QID


Question Reference

QRef


Question Speaker PID

QSpeakerPID


Question Speaker PID To

QSpeakerPIDTo


Questions Asked

QUESTIONSASKED


Speaker Type

SpeakerType

1

Speaker Name

Senator


Deputy


Minister


Witness


Chairman


ViceChairman


ActingChairmanD


ActingChairmanS


Speaker4Display

Speaker4Display

Deputy Joan Burton

Speaker

Speaker

Deputy Joan Burton

SpeakerPID

SpeakerPID

JoanBurtonLAB

SpeakerText

SpeakerText

Joan Burton

OriginalUnidSnippet

OriginalUnidSnippet

FF0EE0F3CAB728D8802582340063C34A

LastModifiedSnippet

LastModifiedSnippet

11/16/2018 04:22:45 PM

TopicIndex1stCategoryValues

TopicIndex1stCategoryValues

Snippet Contents:

The Central Bank now has in legal terms a comprehensive regulatory and supervision framework. Yet, we hear all the time from our constituents and people in broader society about how difficult their lives are as a consequence of issues related to tracker mortgages, commercial loans and buy-to-let loans. The banks were offering all of these with abandon when the financial boom was under way. Of course, being bankers, when the rainy day arrived, they immediately pulled away the umbrella and left people facing years of serious uncertainty. In many cases people were uncertain about whether they would be able to continue to hold on to their family home or buy-to-let, which they were encouraged to buy by the bank at the height of the boom. People were uncertain about where this would leave them.
The Central Bank now has a comprehensive regulatory and supervision framework. The Central Bank supervises all the regulated entities, banks and other financial institutions and they must comply in detail with Irish and EU rules. The Central Bank is charged with ongoing supervision of those banks. More information is now being given to the Central Bank on a regular basis in respect of the banks and their lending profiles, borrowing, balance sheets and so on.
We have a framework of rules, many of which derive from European Central Bank regulations. The Central Bank has a process for the orderly resolution of credit institutions where problems arise. The bank also has an enforcement function.
There has been a significant increase in the number of staff now employed in the Central Bank. The figure is approximately 1,600 at the moment in the new "golden bank", as it is called, on the quays. That expression is used because the outside of the building has a gold-coloured mesh. I know many children call the building the gold building because if a person is walking down the quays, from a distance that is what it looks like. Anyway, the consumer experience of services from individual financial institutions and the way the Central Bank responds to problems is far from adequate. For that reason, the Labour Party is happy to support the Central Bank (Amendment) Bill 2018, as initiated.
The jury is out on whether the Bill will substantially change the current scenario. This is because bankers tend to be robust when it comes to their rights and even more robust about the responsibilities of others when problems arise for products that they have sold to people, including loan and investment products.
The Central Bank is meant to have responsibility to ensure that consumers are protected when it comes to financial products. I am referring to consumers in the broadest sense of the term, not only individual consumers but businesses as well. Anything that provides for greater levels of responsibility in that respect, which the Bill is seeking to do, or that involves potential penalties where regulations are breached or where institutions fail to honour the legal rights of consumers is to be welcomed.
News unfolded yesterday that Permanent TSB is likely to sell a large portfolio of loans, potentially to private equity vulture funds. We do not know yet where the bank will target the sale. Anyway, that bank is identifying non-performing loans and planning to bundle them and sell them.
I imagine the experience with loans has been difficult for many businesses. We are in an economy where property values have recovered for reasons we are all aware of. Many businesses and individuals are back on their feet. It should be possible, therefore, to find resolution to many of the loans in question. I am aware that there have been some attempts by Permanent TSB to identify some of those cases. Nonetheless, it is an extraordinary risk for consumers and small businesses in particular if another significant bundle of loans appears to be about to be auctioned off.
Previously, the Joint Committee on Finance, Public Expenditure and Reform, and Taoiseach issued an invitation to representatives of various financial institutions to discuss issues before the committee. Representatives of the banks, by and large, were prepared to appear, respond and discuss issues with the committee. However, those from the vulture funds all declined. There is a serious issue here. There is in effect no mechanism of accountability that I am aware of for these institutions. The powers of the Central Bank in respect of such institutions have not been absolutely clarified. Again, I am unsure whether this legislation will be able to address that issue.
The Minister has been critical of the Central Bank for not allowing new institutions to Ireland fast enough where they may be coming in the context of Brexit. In that context, I believe the Central Bank is being careful to ensure people have the right credentials to set up a financial institution here and comply with European regulations. However, it is not clear what can be done by the Central Bank where banks treat customers in an appalling way. There is a need to have a clear structure for how these issues are dealt with. There should be penalties where the banks fail to deal properly and fairly with customers, whether individual domestic customers or commercial customers. That is important.
The Labour Party will support the legislation. We welcome the fact the Government is going to accept the legislation. Certainly, if the Minister has identified ways in which the legislation can be improved, then I would like him to return to the Dáil and give us the details.