Friday, August 30 12:34:09
How to fix the household debt crisis will come under the spotlight when the chief executives of AIB, Bank of Ireland, Ulster Bank and Permanent TSB come before the Committee on Finance, Public Expenditure and Reform next week.
The Committee on Finance, Public Expenditure and Reform will focus on Ireland's financial services sector and activities within the four main lenders as part of the banking module of its 2013 work programme.
Committee Chairman Ciaran Lynch said: "We are aware of the impact of the mortgage crisis on struggling homeowners. Our meetings next week provide us with the opportunity to examine the issue in more detail with the chief executives of the banks and consider a number of issues of concern, particularly mortgage arrears and the target, that by the end of June 2013, banks should have proposed sustainable mortgage solutions for 20pc of distressed borrowers. When the banks were last before us, there were no specific targets in place to provide solutions for homeowners in arrears. Those targets are now in place and, more specifically, we will consider how the individual banks are meeting their targets and ensuring that there is a consistency of approach in dealing with distressed borrowers."
"With Central Bank figures showing that nearly 100,000 home loans are now more than three months in default, we will be keen to find out what is being done across the board in the banks to provide long-term sustainable solutions to the mortgage crisis and committee members will also want to discuss how the banks plan to deal with the new insolvency legislation."