Tag Archives: Central Bank

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

From top: architect, Sam Stephenson, outside the Central Bank in 1989; The proposed Central Plaza development

The development would see the creation of a glass-roof, two-storey 20,000 sq ft rooftop hospitality destination and viewing area that would offer a 360-degree view of the city.

The mixed-use scheme, known as ‘Central Plaza’, would also include retail, restaurants and café uses at both street and basement level.

It is understood the cost of the redevelopment would be at least €70m.

The proposal also envisages an expansion of the existing plaza and the creation of a new streetscape towards College Green and along Fownes St and Cope St.

€70m plan to redevelop former Central Bank HQ (RTÉ)

Ironically, the work will bring the building closer to what its designer, architect Sam Stephenson, originally intended.

He was forced to redraw his plans for the structure when it emerged that they exceeded the height laid down in the original permission granted for the building in the 1970s.

Developers want to alter the roof of old Central Bank (Irish Times)

7980 New Central Bank_9050255890436887_90436887

governor

From top: The new Central Bank, North Wall Quay, Dublin; Central Bank governor Philip Lane; Mr Lane’s new office.

A vulgar exterior.

Wait until you see inside.

Jounraist Ken Foxe writes:

It has already raised eyebrows with its dramatic gold-plated exterior … now the first details of what sits behind the façade of the Central Bank’s sleek new headquarters have been made public.

More than €23,000 has been spent on custom-made and boutique designer furniture for the office of the governor Philip Lane in the bank’s new building on Dublin’s North Wall Quay.

Records released under FOI reveal how Mr Lane’s personally customised desk will cost a cool €5,080 before VAT.

A sofa for his personal office – bought from the luxury furniture maker Lyndon Clarence – will set the taxpayer back €3,300, according to the records.

Two lounge chairs, each costing €1,582, were also purchased from the same design firm, who are based in Cheltenham in England.

….The governor’s office will occupy 55 square metres on the upper floor of the new building, a floor area larger than some smaller homes around Dublin. Mr Lane will also have a personal storage area, which will add another 6.5 square metres to his office.

The €23,000 bill for boutique and custom-made furniture for office of Central Bank’s governor (Ken Foxe)

Rollingnews