Governor of Central Bank says review of mortgage deposit rules to be published by November
The first review of the Central Bank’s mortgage deposit rules is expected to be published by November, Governor Philip Lane has said. The rules were first introduced in January of last year.
In his first public speech since taking office late last year, the Governor said the review will be based on an analysis of the evidence provided by data from the rules’ first year. He said other factors that may have influenced the mortgage market during this period will also be taken into account
But he stressed the rules mechanism was here to stay, and suggested the evidence would need to be stark to warrant changing them.
“The Central Bank is open to tightening or loosening the calibration of these rules in response to the evidence; still, the value of stability in a rules-based framework means that the evidence threshold to justify adjustments to the rules is significant,” Governor Lane said.
At the Institute of Directors lunch in Dublin, the Governor also promised that he would publish minutes of the meetings of the Central Bank Commission in a bid to boost transparency about the Central Bank.
The minutes will be published about six weeks after each meeting, with the minutes of the first meeting Mr Lane chaired as Governor in mi-December schedule to be released by early February.
He has also committed to publishing data on the Bank’s salary structures and pay scales on an annual basis.
“During my tenure as Governor, my aim is to build on the progress that has been achieved in recent years in recasting the Central Bank as an efficient central bank and financial regulator,” Governor Lane said.
“In particular, I am firmly committed to ensuring that the Central Bank fulfils its critical social responsibility towards consumers of financial services and the general public.
“To this end, the Central Bank will be vigilant and pro-active in its independent macro prudential and financial regulatory policies in order to avoid a repetition of the costly boom-bust cycle that Ireland endured in the last decade.”