The USA is a basket case and is not a relevant comparator. I don’t believe it is massively more difficult than other eu countries or that it is to the degree that justifies increased mortgage rates.
Rates are high in Ireland because competition is low. Competition is low because the government needs to protect the banks.
That’s a certain (politically influenced?) perspective. I don’t think that there are any significant barriers to external competitors entering the market. See the entry of banks into the market here in the 2000’s for reference. The fact that they haven’t, despite the rates being higher here than elsewhere, indicates that there is something they don’t like about the market.
The barrier to the market is getting a license to operate from the central bank.
And you think that the Central Bank is refusing well capitalised foreign banks entering the market to protect the indigenous banking sector or is it possible that the foreign banks are not applying because they do not see the market as attractive?
The former. And not refusing, refusals could be appealed. More keeping the applications in a permanent state of consideration, but certainly not granting licenses.
ah cmon now, thats a crock of shit, unless of course you have stats for applications on hand and duration thereof.
it would be JRable for such a delay
If repossession laws are such a barrier to other mortgage providers entering the market why are funds queueing up to buy packages of non-performing loans? cc @tallback
i presume that answer means you dont have the stats i asked for
because the funds doing the buying up wont face the blowback & boycotting that commercial banks would do, quite simple
And they are buying them for a song. And will look to do deals from day 1 as they dont have any (perceived) moral hazard issue.
Largely because they are buying them at substantially below par price so any resolution will usually mean a success for them and they can pursue cases in a way that banks can’t
Try to sell those mortgages at what they were originally carried at on the banks balance sheets to the funds and see how long your queue is.
No they can’t.
Legally no. Commercially yes. AIB still buckled by huge political influence. A sale gives AIB and the gov plausible deniability
So, mortgage repossessions are a barrier to other mortgage operators entering the market, but not to vulture funds?
People must be living in cloud cuckoo land.
Ireland doesn’t want mortgage competition here. Or at least not yet. The banking system has barely gotten back on track and if we had proper competition here on mortgages our banks would immediately be fucked again. This is very basic stuff.
The existing banks obviously don’t want competition like any business but your notion that the Central bank are blocking competition is risible.
You’ve once again confused your political viewpoint with the facts and waded into an argument armed with no more than strong opinions based upon no supporting facts.
Windmilling around all over the place here is typical. You’ve got several posters who clearly are reasonably well-informed and gave reasoned arguments but you are content with your usual schtick.
I’m out - you have no interest in engaging in reality.
Sure what do I know I’m only relaying from a former solicitor in the central bank.
Ask yourself, given the difference in interest rates in Ireland and in most of the rest of the EU, is it really credible that no other European operator wants to enter the Irish mortgage market? None at all? Really?
Is there many european retail banks in an expansionary mode at the moment? Wouldnt have thought so
UK banks certainly not.
Germans have their own issues.
Our legal system also means switching is not as easy as it should be. There have been new entrants but they have gone in at the expensive end of the market and havent tried to compete on rate e.g. Pepper with US money
So hearsay and conjecture is your em"evidence"
I’m actually meeting my counterparts in the CB next week I must show them your post for their thoughts.
That would be easy to reform quickly if there was will. I wonder why this isn’t done? Hmmm.
Well of course they’d be welcome.
Agree with this point 100%. But its fuck all to do with anything else you’ve been arguing
It’s a variation on the same theme. The banks need to be protected from competition on mortgages for a few years more yet, and you won’t see new entrants to the market until our banks are stable enough to be able to compete.