Tag Archives: Central Bank


This morning.

Via RTÉ:

In its latest Quarterly Bulletin, the Central Bank forecasts 34,000 fewer jobs by the end of next year and 110,000 fewer jobs over the next ten years.

It said: “A disorderly Brexit would present enormous challenges for the Irish economy, especially in the near term, and would result in a loss of output and employment compared to a scenario where the UK remained in the EU.”

….The bank says that gauging the impact this could have on the Irish economy is “the most uncertain exercise” it has ever had to carry out.

110,000 fewer jobs after no-deal Brexit – Central Bank (RTÉ)

Rollingnews

Meanwhile…

From top: The Central Bank in Dublin; Opening page of a letter from the Central Bank to the heads of financial institutions in Ireland

Yesterday.

The Central Bank wrote a seven-page letter to the CEOs of financial institutions in Ireland about their obligations under the Fitness and Probity Regime introduced by the Central Bank under legislation in 2010.

Essentially, the letter reminds the CEOs that their responsibility to ensure staff adhere to fitness and probity laws does not stop after they hire a person – but that they must ensure staff adhere to these rules “on an ongoing basis”.

The letter states that while the obligations of individuals within the industry appear to be “well known”, firms appear to have a “less understanding” of these obligations.

The authors of the letter – Director General of Financial Conduct at the Central Bank Derville Rowland and Deputy Governor of Prudential Regulation at the Central Bank Ed Sibley – say that one issue of “particular concern” is due diligence on an “ongoing basis” in respect of certain employees who have a “controlled function” [CF].

The letter states:

“We have seen instances where serious issues have arisen which should have prompted a firm to ask itself if a particular person in a CF role was still ‘fit and proper’.

In one example, an individual had a significant judgment registered against them, such that questions arose over that individual’s financial soundness, but the firm failed to take any steps to satisfy itself that the individual still complied with the standards.

“Similarly, we have seen examples where individuals have been criticised publicly by other regulators and/or the courts for past actions. However, their current firms have failed to take any steps to assess whether those individuals are still fit and proper, and it has been left to the Central Bank to intervene.”

In addition, the letter raises concerns about institutions not informing the Central Bank about individuals who’ve been dismissed for fraud.

It states:

“We also see instances where Firms have identified fitness and probity concerns about an individual and have taken steps to address these, but have failed to
report those concerns to the Central Bank.

In some cases, the firms have gone so far as to suspend or dismiss the individuals for fraud but have neglected to report this to the Central Bank.

“In that scenario, the Central Bank is unable to consider an individual’s misconduct, in particular in respect of any future PCF [pre-approval controlled function] application that an individual might submit.

“To be clear therefore, where your Firm has any fitness and probity concerns regarding a person who is performing a CF role, and takes action on foot of those concerns, you must notify the Central Bank without delay.”

The letter also states that the Central Bank, under its ‘gatekeeper’ remit, is supposed to approve the promotion of people to certain senior positions in writing – after this approval is sought by the firm.

But, the letter states, some firms have not sought the Central Bank’s approval and, in certain cases, the individuals who were promoted “have been those roles for a considerable time“.

The letter adds:

“You, your board and any relevant committees play a critical role in ensuring that the right people are proposed as PCFs. It is crucial that you ask not merely whether a given candidate is competent, but also whether the individual acts with integrity at all times.”

The letter can be read in full here

Earlier: Nothing To See Here Ever

Thanks Breda

From the Central Bank’s latest quarterly report published today

The Central Bank published its latest quarterly bulletin this morning.

From the report:

“Following a strong performance last year, the growth of the Irish economy is projected to moderate somewhat in 2019 and 2020, reflecting both the impact of a less favourable and more uncertain international environment and also the limits imposed by domestic capacity constraints as labour market conditions tighten.

“…The central projection continues to assume that a disorderly, no deal Brexit scenario can be avoided and that trading relationships between Ireland and the UK remain unchanged over the forecast horizon.

“…A disorderly, no deal scenario would have very severe and immediate disruptive effects, with consequences for almost all areas of economic activity. ”

“…However, Brexit is not the only risk to the Irish economic outlook. On the external side, there continue to be other downside risks facing the Irish economy. The international economic outlook has weakened since the publication of the last bulletin.

“Given the position of Ireland as a small, highly open economy and the important role of multinational firms within the economy, the evolution of global economic and trading conditions and movements in major exchange rates will have an important bearing on Irish economic performance.”

Quarterly Bulletin (Central Bank)

Central Bank slightly reduces estimates for economic growth this year (RTE)

 

First Time Buyer writes:

It’s official we are back. And  by ‘we’ I mean homeowners and landlords

Two reports out today, one from the central bank to let us know that some people in Ireland are wealthier then they were during the boom thanks to the rapid recovery in house prices (**breaks out the Bolly**)

The other report from Daft.ie stating that for those unfortunate enough not to own a home that rents have risen by an incredible 70% and are now 23% higher than Celtic Tiger peak (**cries into avocado toast**)

We’ve moved from a country for developers to a country for landlords.

This madness must end.

Daft Rental Report

Irish households now wealthier than during the boom (Irish Times)

Sean Whelan, on RTE, reports:

Research from the Central Bank shows that 44% of mortgages or just over 13,000 in long-term arrears are now more than five years past their due date.

That is up from 34% from a year previously.

The figures form part of a review of how bad loans have been handled in the Irish banking system.

The Central Bank thinks just over half of the mortgages in arrears of two years or more may end up with the borrower losing their homes.

Of particular concern are the 39% of borrowers with long-term arrears who are not talking to their banks to try to sort out a solution. That is about 10,000 customers of the five main mortgage banks in Ireland.

Central Bank fears up to 10,000 homes face repossession over mortgage arrears (RTE)

Resolving Non-Performing Loans in Ireland: 2010-2018 (Central Bank)

Rollingnews

Central Bank governor Philip Lane yesterday

Right so.

Yesterday: ‘Do You Have Enough Powers, Do You Think?’

UPDATE:

Ulster Bank Chief Executive Gerry Mallon (top) and Allied Irish Bank Chief Executive Bernard Byrne arriving at the Department of Finance this morning

This afternoon.

In relation to the tracker mortgage scandal…

Following meetings at the Department of Finance with the Finance Minister Paschal Donohoe this morning…

Ulster Bank Chief Executive Gerry Mallon told journalists:

“We met with the minister and we listened to what he had to say. We’ve apologised unequivocally for the mistakes the bank has made and I’d like to reiterate that apology again today. We are genuinely very sorry.”

“Our number one focus, as a bank, is putting this right and that’s what we’re going to work hard at now. We’ll make a statement later. Thank you.”

Allied Irish Bank Chief Executive Bernard Byrne told journalists:

We have apologised several times before and I apologise again for what has happened in respect of this, to tracker customers. We listened to what the minster had to say and we’re going to make a fuller statement tomorrow in respect of that.

“And for the moment what we’re able to confirm is we’re fully committed to working in line with the framework that exists and we’re confident we’ll be able to make significant progress again.”

This afternoon.

Further to talks between the Minister for Finance Paschal Donohoe and the governor of the Central Bank Philip Lane.

And the fact the Central Bank cannot compel banks to give certain levels of compensation to cases after August 2013…

Mr Lane told journalists:

So the current situation is we have 13,000 cases. Already, €160million has been paid out. We think the vast majority of those cases will be paid out before Christmas.

“However, we continue to make, to press the banks to expand their coverage, to make sure all of those affected are included in their schemes.

“That is the current focus of our work: is to make sure, beyond those 13,000 which, you know, those are in progress, is to make sure yet more are included. So that all of those affected will receive redress and compensation from their banks.

“Our focus is on our work now which is fully committed to protecting consumers. This examination was launched by us to make sure that all of those affected will receive redress and compensation for the harm that they’ve suffered.

“So, right now, we’re fully engaged with our consumer protection mandate which is at the heart of our current work.

“So, already we’ve seen over €160million paid out and that’s only in relation to a fraction of the cases. We are not going to put any limit on the amount paid out.

It is up to the banks to make fair and generous offers to those affected so that the full scale of the harm is remedied. So I don’t want to put an upper limit, the banks to be as generous as is reasonable given that the harm suffered by those affected in this case.”

At 1.11 in the clip above, one male journalist asked Mr Lane: “Do you have enough powers, do you think?”

But Mr Lane moved to another journalist without answering that specific question.

Meanwhile…

The CEOs for KBC and Bank of Ireland have told RTE News that they will be making a statement shortly.

Earlier: Admonishment

This afternoon.

During Leaders’ Questions.

Further to the publication yesterday by the Central Bank of its latest Update on Examination of Tracker Mortgages

Taoiseach Leo Varadkar (above) spoke about the tracker mortgage scandal.

He said:

“The Central Bank yesterday published its latest update on its industry-wide examination of tracker mortgages which was commenced in 2015. Approximately 13,000 impacted accounts have been identified by lenders as of the end of September, that’s an increase of 3,100 since the March report.

The Central Bank is currently pursuing enforcement investigations in relation to tracker mortgage-related issues arising in Permanent TSB and Ulster Bank Ireland and two further enforcement investigations into other lenders are now in train and it’s anticipated that more enforcement investigations will follow.

The Central Bank is not making the names of the two lenders known while the process is ongoing. And as a result of the Central Bank’s challenges, the two lenders are reconsidering certain outcomes of their reviews and our due to revert to the Central Bank by the end of October.

“If the Central Bank is not satisfied with the response from those two lenders, by the end of October, I think at that point, the Central Bank will name those two lenders.”

Watch Dail proceedings live here

Thousands may be unaware they are victims of tracker controversy (Conor Pope, The Irish Times)

The number of mortgage accounts impacted by the tracker scandal has risen by 3,100 to 13,000 since March, according to the Central Bank.

In an update on its examination of the issue, the regulator said 23 mortgage holders have so far been identified who lost their homes as a result of being improperly moved from their low-rate tracker product to a higher rate loan.

A further 79 buy-to-let customers affected have also had properties repossessed.

The Central Bank said it expects both of these figures to rise.

By the end of September, banks had rectified the interest rates applied to around 7,700 (98%) impacted mortgage accounts that have so far been identified – a rise of about 1,400 since March.

13,000 mortgage accounts affected by tracker scandal so far – Central Bank (RTÉ)

Rollingnews