Business Irish

Tuesday 12 December 2017

Another ticking off for banks who are still dragging heels

THE time for excuses has come and gone. Four years into the mortgage arrears mess and the forces putting pressure on the banks are growing by the day.

Yesterday Taoiseach Enda Kenny weighed in to support comments by Central Bank regulator Fiona Muldoon that the banks were failing to deal with the mortgage mess.

Ms Muldoon had told the Irish Banking Federation conference on Tuesday that banks were behaving like teenagers over demands that they offer long-term solutions for customers in mortgage arrears.

She accused the bankers of waiting for house price increases or economic recovery to solve the crisis.

Mr Kenny told the Dail yesterday that he welcomed the comments of Ms Muldoon and others including Department of Finance secretary general John Moran and Central Bank governor Patrick Honohan about how the banks are dealing with the mortgage crisis.

Mr Kenny said the forthcoming personal insolvency legislation will be active by March 1 and that banks should act now.

The problem for the Government's credibility is that the deadline for the implementation of the personal insolvency is changing all the time. Only last week, Mr Kenny told the Dublin Chamber of Commerce annual dinner the new insolvency regime would be in place by February.

Be that as it may, there is nothing to stop banks doing deals now with hopelessly insolvent mortgage holders, as the Taoiseach said.

It is time for action.

Indo Business

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