Mortgage Approvals – May 2015

Banking & Payments Federation Ireland (BPFI) has published the latest figures from the
BPFI Mortgage Approvals Report for the three months ending May 2015.

The following are the key elements:

  • A total of 2,461 mortgages were approved per month, on average, in the three months ending May 2015, of which 2,215 (90%) were for house purchase.
  • The number of mortgages approved rose by 20.6% year-on-year and by
    4.6% month-on-month.
  • The value of mortgages approved per month, on average, in the three months ending May 2015 was €452million, of which €421 million (93%) was for house purchase.
  • The value of mortgage approvals increased by 26.3% year-on-year and by 2.5% month-on-month.

Data collection for the BPFI Mortgage Approvals Report began in September 2012 covering the period from January 2011 onwards in respect of the market’s main mortgage lenders. The BPFI Mortgage Approvals Report May 2015 is available on the BPFI website here.

All figures are based on the three-month moving average. Year-on-year compares the average for the three months ending May 2015 with the three months ending May 2014. Month-on-month compares the average for the three months ending May 2015 with the three months ending April 2015.

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Note: Banking & Payments Federation Ireland is the voice of banking and payments in Ireland, representing over 70 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.

Contact: Nuala Buttner, ph: 085-1744275

Capital Markets Union, IFS 2020 and the importance of a consistent regulatory environment were among the topics discussed at the FIBI International Banking Conference 2015

The Federation of International Banks in Ireland (FIBI), which is affiliated to Banking & Payments Federation Ireland (BPFI), today held its flagship annual conference ‘Strategically Positioning IFS’ at The Marker Hotel, Dublin. Today’s conference brought together industry leaders and decision makers from across the international and domestic banking and financial services sector.

Speaking about the issue of regulation and its application, Jonathon Lowey, FIBI Chairman and Chief Financial Officer, JP Morgan Ireland said:

What we wish to see is for regulation to be as responsive here as it is in other competing jurisdictions. We would also like to see regulation being applied in a way which is consistent with other similar jurisdictions. Unfortunately, this is not always the case and the net result appears to be that sound business propositions in banking and payments end up being licensed and established elsewhere. While many in the fields of banking and payments see the environment here as conducive to innovation, several have cited timeliness of decision making and the responsiveness of the Central Bank as impacting significantly on their ability to develop new business lines. This is why we are especially pleased that the IFS Strategy requires the development and publication by the Central Bank of operational metrics and we look forward to contributing our views on these.”

The full version of Mr. Lowey’s speech can be downloaded here.

Simon Harris, T.D., Minister of State at the Department of Finance with Special Responsibility for International Banking (incl. IFSC) provided the opening address at today’s conference. While speaking about the implementation of the IFS2020 Strategy, Minister Harris said:

“The implementation structures of IFS 2020 with a high level group chaired by me and involving both the public sector and private industry should ensure that issues within and ancillary to the Strategy are considered and prioritised for action. This will allow for issues of interest to be considered by the sector. In addition, the Strategy is intended to be flexible to cope with the challenges to be addressed. Indeed, an important part of the approach in dealing with the Strategy is the recognition that it will change and evolve over the next five years.”

The full version of Minister Harris’s speech can be downloaded here.

Also speaking at today’s conference Jonathan Hill, Commissioner of Financial Stability, Financial Services and Capital Markets Union, European Commission highlighted the benefits and opportunities expected from the Capital Markets Union:

“There is a shared analysis of the benefits that a stronger single market in capital can bring. That it can support more cross-border risk-sharing, create deeper and more liquid markets, and increase the resilience of the financial system through diversifying the sources of funding to the economy. Or, to put it another way, it will better link savings with growth. It will provide more options and better returns for savers and investors. It will offer businesses more choices of funding at different stages of their development. It will channel investment to where it can be used most productively, increasing the opportunities for Europe’s companies and infrastructure projects. It will help to ensure that the financial system supports growth and jobs and help with the demographic challenges Europe faces.”

The full version of Commissioner Hill’s speech can be downloaded here.

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Note: The Federation of International Banks in Ireland (FIBI) is the principal voice of the international banking and financial services sector in Ireland. FIBI is affiliated to Banking & Payments Federation Ireland (BPFI).
Contact: Sinéad McGovern 087 6411725

BPFI Housing Market Monitor Q1 2015

The BPFI Housing Market Monitor for Q1 2015, published today by Banking & Payments Federation Ireland (BPFI), draws on a range of published data for its assessment of the current state of the housing market.

The following are among the key trends identified for the first quarter of 2015 compared to the same period in 2014:

  • 18.9% annual increase in the number of dwellings listed for sale – at 11,600 this is the highest first-quarter total since the data series began in 2011
  • 25.8% annual increase in the number of dwelling completions – this is the sixth successive quarter where completions have risen in year-on-year terms
  • 51.5% annual increase in the number of mortgages approved by lenders – the 13th successive quarter of annual growth
  • 64% annual increase in the number of mortgages drawn down by borrowers

BPFI’s Economist and Head of Accounting & Tax, Ali Uğur, points in his commentary to the widening gap between completions in a given year and commencements in the previous year – “perhaps due to the increased activity on some of the developments which had been classified as ‘unfinished housing’ units during the period”.

Cautioning about the importance of having a clear understanding of what really constitutes commencements and completions, he goes on to write:

“The gap between commencements and completions is important: commencement figures are not currently a good guide to future completions. Similarly, completions do not provide a true picture of the residential construction activity in Ireland and may give a false picture in relation of the capacity of this sector to produce the estimated supply in future years.”

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The BPFI Housing Market Monitor is published quarterly and can be viewed on the BPFI website here.

Note: Banking & Payments Federation Ireland (BPFI) is the voice of banking and payments in Ireland, representing over 70 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.

Contact: Sinéad McGovern 087 6411725