Mortgage Approvals – November 2016

Banking & Payments Federation Ireland (BPFI) has published the latest figures from the BPFI Mortgage Approvals Report for the three months ending November 2016.*

The following are the key elements:

  • A total of 3,377 mortgages were approved per month, on average, in the three months ending November  2016 – some  1,591 (47.1%) were for first-time buyers (FTBs) while mover purchasers accounted for 1,094 (32.4%).
  • The number of mortgages approved rose by 30.8% year-on-year and  increased by 2.0% month-on-month.
  • The value of mortgages approved per month, on average, in the three months ending November 2016 was €680 million – of which €309 million (45.5%) was accounted for by FTBs and €267 million (39.3%) by mover purchasers.
  • The value of mortgage approvals rose by 43.2% year-on-year and increased by 4% month-on-month.

Re-mortgage or switching approvals grew on a year-on-year basis with activity accounting for 9.6% of the value and 8.8% of the volume of mortgages.

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 November 2016  as well as the time series data file 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 November 2016 with the three months ending November 2015.  Month-on-month compares the average for the three months ending  November 2016 with the three months ending October 2016.

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: Jillian Heffernan, Head of Communications, 087 901 6880

BPFI Stakeholder Engagement

BPFI was pleased to host in November a series of meetings for member banks with Danièle Nouy, Chair of the European Central Bank’s Supervisory Board. Speaking to the theme, “European Banking Supervision – the second year”, Ms Nouy presented her thoughts on the European banking regulatory and supervision frameworks and took questions from senior-level representatives from our domestic and international banks.  The Central Bank’s Ed Sibley and Paul Moley also attended, as did the ECB’s Ronan Sheridan

Additionally we recently played host to a visiting delegation from the Dutch Banking Association to share positions on and discuss a range of topics.  Against the backdrop of Brexit we are reaching out to a number of our fellow banking associations to explore the basis for future policy alliances.

Finally, the publication of our latest Housing Market Monitor provided the opportunity to brief mortgage and housing market stakeholders – including estate agents, brokers and builders – on the latest trends.

Central Credit Register Updates

BPFI and its members have attended a number of project update sessions on the Central Credit Register (CRR) with the Central Bank in recent months. These updates have provided more detail on a number of issues including timelines, data protection, CBI Credit Information Provider (CIP) engagement plans and PPSN usage, as well as the CCR communications campaign and advertising schedule, CIP obligations to communicate with a Credit Information Subjects (CIS), and an overview of a recent market research poll relating to the CCR.

BPFI attends Single Resolution Board industry dialogue

BPFI was recently invited to attend the Single Resolution Board’s (SRB) industry dialogue meeting at which the Central Bank was also present. Chair of the SRB, Elke König, delivered a welcome address and presentation on the SRB resolution planning work, followed by Mauro Grande, Member of the Board, who spoke on Minimum Requirement for own funds and Eligible Liabilities (MREL), and Timo Löyttyniemi, Vice Chair of the SRB, who presented on the Single Resolution Fund (SRF) and Administrative Contributions for the SRB.

One of the key discussions for BPFI and its members was around the transparency of contribution fund calculations. The SRB recognise that organisations require an understanding of how the amount is calculated, given the complexity of the calculation approach. It is therefore seeking to increase transparency by further harmonising information on calculation outcomes and by improving the understanding of the calculation methodology.

Preparation gets underway in light of revised Payments Services Directive 2

BPFI is working with its members to analyse the new provisions in the revised Payments Services Directive and prepare for changes in systems and processes ahead of the application deadline of 13 January 2018. In addition, BPFI has responded to the European Banking Authority public consultation regarding the development of Regulatory Technical Standards (RTS) for the approval of the European Commission on Strong Customer Authentication (SCA) and Common and Secure Communication, as mandated under the revised Directive in Article 98. The draft RTS has generated much debate in Europe, particularly in regard to the application of SCA and the communication requirements for the provision of access to payments accounts.  The European Banking Authority is due to issue its final RTS to the Commission in February 2017 for consideration. Implementation of the RTS will not become effective until October 2018 at the earliest.

BPFI to prepare response to Minimum Competency Code Review

BPFI will work with members to prepare an industry response to the recently published Central Bank consultation paper on a review of the Minimum Competency Code 2011 (MCC).  The MCC sets out statutory minimum professional standards for staff of financial service providers in relation to retail financial products.  BPFI has established a Review Working Group and plan to make a submission ahead of the February 2017 deadline.

Public Consultation on Cyber Security Directive

BPFI is currently working with members to prepare a response to a public consultation on the Security of Network and Information (NIS) Directive recently published by the Department of Communications, Climate Action and Environment (DCCAE).

In July 2016, the European Union formally adopted a Directive on security of network and information systems which is the first piece of EU-wide legislation on cybersecurity, concerning measures for a high common level of security of network and information systems across the Union.

Key themes of the Directive include:

1. Preparedness in terms of National capabilities.
2. EU level cooperation exchange of information and coordinated reaction.
3. A culture of NIS across sectors, NIS risk management culture and Public –Private Cooperation.

The Directive is required to be transposed in Ireland by May 2018 and will require regulation of cybersecurity in the finance, energy, transport, health, water distribution and digital sectors in Ireland. Businesses in these sectors and operators of essential services will have to take appropriate security measures and seek to notify serious incidents to the relevant national authority.

Annual Review of StepChange Debt Charity Initiative

BPFI recently undertook a 12-month operational review of its StepChange Debt Charity Ireland scheme which provides free, independent, debt advice service to borrowers who are struggling to meet their financial commitments. The initiative is funded by AIB, Bank of Ireland, KBC, permanent tsb and Ulster Bank. While there have inevitably been some initial challenges, both the lender and borrower experience of the StepChange initiative has been positive.

Award Win for Financial Education Initiative European Money Week 

European Money Week, the financial education initiative led by the European Banking Association (EBF) and supported by BPFI, has won the 2016 European Public Affairs Award for Best Trade Association Campaign. Established in 2015, European Money Week is a joint initiative between the EBF and over 20 banking associations across Europe including BPFI which aims to raise public awareness on financial literacy and improving financial education for students at primary and secondary level. BPFI’s participation centres on www.BusinessEducation.ie  an online resource for teachers and students of Leaving Certificate Business, Economics and Accounting. BPFI recently met with our Financial Education Working Group to discuss participation in European Money Week 2017 which will take place from 27th March to 2nd April next year.