Brendan Burgess
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http://www.rte.ie/news/2015/0707/713298-banks/
A draft report by the European Commission, seen by RTÉ News, has stated that it is important to allow Irish banks sufficient leeway in setting mortgage interest rates.
The report is the third review of the Irish economy post the bailout programme and was carried out from 27 April to 1 May this year.
The report found that standard mortgage rates in Ireland are relatively high due to credit risks of non-performing loans and legacy assets.
However, it states that continued pressure on the banks to cut rates may undermine financial sector stability by reducing bank profitability and impact future privatisation prospects.
It also says it could have negative implications for market competition by discouraging new entrants. It states it is important efforts to promote bank transparency in this area are welcome.
Number of repossessions 'low'
On the issue of repossessions it notes that voluntary engagement between lenders and debtors has improved and points to the new Government measures to support those in arrears and boost the low use of the insolvency process.
However it says that the legal system slows the resolution process of debts with numerous adjournments and a large number of pending cases.
Overall, it says while the banks have stepped up their efforts, the overall number of repossessions is low with the majority voluntarily surrendered.
It states a surge in repossessions is not expected but a steady rise may continue due to the amount of protracted arrears cases.
It suggests careful supervision of the banks resolution efforts and also proposes efforts to make legal proceedings more efficient.
A draft report by the European Commission, seen by RTÉ News, has stated that it is important to allow Irish banks sufficient leeway in setting mortgage interest rates.
The report is the third review of the Irish economy post the bailout programme and was carried out from 27 April to 1 May this year.
The report found that standard mortgage rates in Ireland are relatively high due to credit risks of non-performing loans and legacy assets.
However, it states that continued pressure on the banks to cut rates may undermine financial sector stability by reducing bank profitability and impact future privatisation prospects.
It also says it could have negative implications for market competition by discouraging new entrants. It states it is important efforts to promote bank transparency in this area are welcome.
Number of repossessions 'low'
On the issue of repossessions it notes that voluntary engagement between lenders and debtors has improved and points to the new Government measures to support those in arrears and boost the low use of the insolvency process.
However it says that the legal system slows the resolution process of debts with numerous adjournments and a large number of pending cases.
Overall, it says while the banks have stepped up their efforts, the overall number of repossessions is low with the majority voluntarily surrendered.
It states a surge in repossessions is not expected but a steady rise may continue due to the amount of protracted arrears cases.
It suggests careful supervision of the banks resolution efforts and also proposes efforts to make legal proceedings more efficient.