Banks won't be allowed meet targets with home repossession

The Minister for Finance, Michael Noonan. said banks can't meet their targets on mortgage arrears by simply repossessing homes.

Michael Noonan has told the Dáil that the government will reject any claims that the banks are meeting the targets set down by threatening to kick people out of their homes.

He told TDs he is disappointed with the progress banks have made so far in dealing with struggling borrowers.

But he says the banks are now aware that they can't take the easy option to meet their targets for restructuring mortgages:

"We don't deem letters of repossession to be satisfactory solutions - while we need to know the information … they shouldn't be put in the tot of what is satisfactory long-term solution."

"And the banks are aware of that."

Minister Noonan also claimed that "high-profile" customers of Anglo Irish Bank are not being given special treatment.

He said lists drawn up of "politically exposed" or high-profile customers were a legal requirement to stop money laundering.

"This wasn't an initiative taken by IBRC [Irish Bank Resolution Corporation] … it's to avoid preferential treatment being given to people because of their place in society."

Section 37 of the Money Laundering Act 2010 provides for "special steps" to be taken in the case of politically exposed persons, their associates or family members, "as are reasonably warranted by the risk that the customer or beneficial owner ... is involved in money laundering or terrorist financing."

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