The Central Bank Governor, Philip Lane, is to appear in front of the Oireachtas Finance Committee later today to talk about the Sinn Fein private members bill “No Consent, No Sale
The Irish Independent reports the Governor is set to say he has “grave concerns” about the bill which passed the second stage of the parliamentary process a few weeks ago.
If passed, the bill would severely restrict the ability of banks to undertake loan sales. The bill would require banks to get the specific consent of a borrower before the sale of a mortgage to third party. The Central Bank has already provided feedback to the Department of Finance that the bill would pose financial stability risks.
According to Goodbody Stockbrokers, "In today’s hearing, the Governor is set to indicate the bill will not give any additional protection to consumers. Indeed, it would damage the bank’s ability to undertake securitisation, driving up funding costs and mortgage rates for consumers. Mr Lane is set to also say that it would be especially destabilising in a crisis environment since the ability to restructure balance sheets and tap liquidity with the ECB would be impaired. Mr Lane’s comments follow recent government comments that the bill “could impose significant economic and financial costs for the Irish economy."