Housing and Mortgage Conference: 2014 and Beyond – 30th January 2014

Picture L to R: Paula Ter Brake, Rockstead, David Duffy, ESRI, Jim O’Keefe, AIB and Niall Hubert Fitzpatrick, CIF

Bringing together key stakeholders with the shared goal of fostering the burgeoning recovery of the mortgage market in Ireland, the conference provided open discussion and debate regarding critical demand and supply factors to be addressed in order to enable people to buy or rent their own home. Topics for discussion included the Government’s spatial strategy, the supply of housing, the evolving mortgage market, and challenges and opportunities in development finance. The conferenced closed with an open panel discussion involving some senior executives of our main mortgage lenders.

Mortgage Approvals Up in 2013

The latest figures from the IBF Mortgage Approvals Report, published by the Irish Banking Federation (IBF), show that 1,762 mortgages* to the value of €317 million were approved by lenders here during the month of December.

This brings to 18,520 the total number of mortgage approvals during 2013, which represents an increase of 4.1% compared to 2012.  The vast majority of these – 17,058 – were for house purchase, in itself representing an increase of 6.1% over the previous year.

The following are the key elements:

  • A total of 1,762 mortgages were approved in December, of which 1,639 (93%) were for house purchase.
  • The number of mortgages approved increased by 3% from December 2012 to December 2013 but fell by 2.2% on a monthly basis between November and December 2013.
  • The value of mortgages approved in December was €317 million of which €305 million (96%) was for house purchase.
  • The value of mortgage approvals increased by 10.1% from December 2012 to December 2013 but fell by 1.2% on a monthly basis between November and December 2013.

This graph presents the cumulative year to date trend in mortgage approvals up to December each year.

YTD approvals Dec 13

The following graph presents the trend in approvals on a monthly basis since December 2011.

Monthly approvals Dec 13

Commenting on the figures, IBF Chief Executive, Noel Brett stated:

“The picture for 2013 shows growth in both volume and value in the level of mortgage approvals over 2012 and this upward trend is welcome. With November traditionally the peak month for mortgage activity, the month-on-month decline in approvals between November and December is to be expected. Banks are well positioned to lend to customers who meet the criteria for a mortgage – the key consideration being the borrower’s capacity to repay.”

Data collection for the IBF Mortgage Approvals Report began in August 2012 covering the period from January 2011 onwards in respect of the market’s main mortgage lenders. The report can be viewed on the IBF website here.

Ends/

Figures are based on the three-month moving average

Note: The Irish Banking Federation (IBF) is the principal voice of the banking and financial services sector in Ireland, representing over 70 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.

Contact: Jillian Heffernan Marketing Communications Manager, IBF, Ph: 01 4748835 / 087 9016880

BSTAI Achievement Awards – 17th January 2014

Pictured L to R: David Duffy, President IBF, Jennie Harrington, Honorary President, BSTAI, Jamie Hannon, Leaving Cert Accounting Gold Medal Winner, Pascal Donohue, TD, Minister of State for European Affairs

The awards recognise the highest scoring students in Accounting, Economics and Business at Leaving Certificate Level and Business Studies at Junior Certificate Level.

The winners were presented with their medals by David Duffy, President, Irish Banking Federation (IBF), Jennie Harrington, Honorary President, BSTAI, Pascal Donohoe, T.D., Minister of State for European Affairs.

The winning students were as follows:

Leaving Certificate Business
Student: 
Jason Banville
School: St Mary’s CBS, Enniscorthy, Co Wexford
Teacher:
 Mr Kevin Ryan

Leaving Certificate Economics
Name:
 Cathal Ó Dulacháin
School: Colaiste Eoin, Bothar Stigh Lorgan, Baile An Bhothair, Co Dublin
Teacher: Mr Rónán Murdock

Leaving Certificate Accounting
Name:
 Jamie Hannon
School: The Intermediate School, Killorglin, Co Kerry
Teacher: Ms Sheila Kinston

Junior Certificate Business Studies
Name:
 Cathriona Murphy
School: Maria Immaculata Community College, Dunmanway, Co Cork
Teacher: Ms Claire Kelly

Gold Medals for Top Business Studies Students

BSTAI achievements awards

Picture L to R: David Duffy, President, IBF, Jennie Harrington, Hononary President, BSTAI, Jason Banville, Leaving Certificate Business Gold Medal Winner and Pascal Donohue, T.D., Minster of State for European Affairs.

Four students from various secondary schools around the country were awarded with gold medals for their outstanding achievements in business studies in last year’s Junior and Leaving Certificate.

The Business Studies Teachers’ Association of Ireland (BSTAI) Achievement Awards 2013, hosted by the Irish Banking Federation at their offices in Nassau Street, Dublin, recognise the achievements of students in Accounting, Economics and Business at Leaving Certificate Level and Business Studies at Junior Certificate Level.

The winners were presented with their medals by David Duffy, President, Irish Banking Federation (IBF), Jennie Harrington, Honorary President, BSTAI, Pascal Donohue, T.D., Minister of State for European Affairs.

The winning students were as follows:

Leaving Certificate Business
Student: Jason Banville
School: St Mary’s CBS, Enniscorthy, Co Wexford
Teacher: Mr Kevin Ryan

Leaving Certificate Economics
Name: Cathal Ó Dulacháin
School: Colaiste Eoin, Bothar Stigh Lorgan, Baile An Bhothair, Co Dublin
Teacher: Mr Rónán Murdock

Leaving Certificate Accounting
Name: Jamie Hannon
School: The Intermediate School, Killorglin, Co Kerry
Teacher: Ms Sheila Kingston

Junior Certificate Business Studies
Name: Cathriona Murphy
School: Maria Immaculata Community College, Dunmanway, Co Cork
Teacher: Ms Claire Kelly

IBF members agree new Protocol to collectively consider cases of SME multi-banked debt

  • Protocol enables banks to work in support of the viability of indebted SMEs
  • Operational from 6th January 2014

The Irish Banking Federation (IBF) today launched a new IBF Protocol on Multi-banked SME Debt.  This is designed to allow an SME in financial difficulty, and with multi-banked debt, to communicate with IBF member banks on a collective basis and to allow those banks to collectively discuss and consider the case.  Operational from today, Monday 6th January, the Protocol will supplement existing bilateral bank/SME customer relationships.

At the request of an SME customer or of a bank (with the customer’s consent) this Protocol will see the setting up of a banks’ Liaison Group to enable the indebted SME to engage with all debtor banks at the same time and to facilitate collective consideration of that particular case by those same banks.  The operational framework underpinning the Protocol provides for an SME Customer Consent Form and an SME Customer Request Form as well as various processes and timelines to facilitate the provision of full information by the SME and of a response by the participating banks.

The following categories of debt are covered:

  • Direct SME Debt comprises debt advanced directly to the SME business by member banks to finance the SME business.
  • Indirect SME Debt comprises debt advanced indirectly to the SME business by member banks, which finances any asset (including premises) which is essential to the functioning of the SME business.  Such debt is most likely to be in the name of a party other than the SME.
  • SME Related Debt comprises debt other than Direct or Indirect SME Debt which depends primarily for its repayment on the viability and cash flow of the SME business

Commenting on the launch of the Protocol, IBF President, David Duffy, stated:

The IBF and our member banks fully recognise the importance of working with SMEs to manage their legacy debt in the hope of returning as many of them as possible to full viability again.  This challenge can be further complicated where such debt is shared across a number of banks and this Protocol is designed to address just that.  The fact that all of the SME lending banks in the market are subscribing to the Protocol is further testament to the banking sector’s commitment to support our SMEs.  We also recognise the need to make this Protocol as relevant as possible to the needs of the marketplace which is why we are committed to regular reviews of its operation, the first of which will take place no later than six months after its introduction today.” 

The following banks subscribe to the Protocol:

  • ACCBank
  • AIB Bank
  • Bank of Ireland
  • Danske Bank
  • KBC Bank Ireland
  • Permanent tsb
  • Ulster Bank

A copy of the IBF Protocol on Multi-Banked SME Debt can be viewed on the IBF website here

Note: The Irish Banking Federation (IBF) is the principal voice of the banking and financial services sector in Ireland, representing over 70 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.

Contact:

Jillian Heffernan, Marketing Communications Manager, IBF. Ph: 01 4748835 / 087 9016880