Business Irish

Thursday 27 October 2016

Central Bank defends mortgage rules, says parameters limit risk of credit boom

Published 14/06/2016 | 11:10

Central Bank
Central Bank

The Central Bank has said it accepts that its tough mortgage deposit rules have impacted the ability of people to buy a property, but stressed the measures are designed to protect the system and limit the risk of another credit boom.

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And deputy governor Sharon Donnery insisted again that the evidence needed to change the rules would be "significant " as she set out details of a public call for evidence into their impact.

The Central Bank said it welcomes data-based and other analytical submissions to inform its assessment.

MS Donnery said they would look at house prices and credit dynamics, as well as other side effects. Submissions will be open from tomorrow and will close on August 10.

At the publication of its latest Macro Financial Review, the bank highlighted the uncertainty around the EU referendum vote in the UK

It said a so-called Brexit could cause market volatility in the short term for Ireland.

The bank said there would also be a negative impact on Irish exports to the UK.

"The Central Bank has been engaging with firms across all parts of the financial sector, with a particular focus on the firms with the largest UK exposures, to ensure that they are prepared for risks associated with a potential Brexit," the bank said.

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