Central Bank expects lenders to engage with borrowers in financial difficultyNovember 2020
The Covid 19 pandemic has impacted on all aspects of life and left no one untouched. For some the impact is minimal for others it has been and continues to be huge. With the reintroduction of level 5 restrictions, many people are no longer able to go to work due to the nature of their employment. Throughout the pandemic, the Central Bank has been very vocal in outlining the conduct it expects of financial service providers, especially lenders dealing with borrowers in difficulty.
At the end of September 2020, Director General Derville Rowland addressed the MABS annual seminar. The speech covered many topics including the stability and soundness of firms, the component parts of financial conduct regulation and Covid and destressed debt. The Director noted “…. given that some borrowers may continue to experience difficulties in returning to loan repayments and require individually tailored supports. In those cases, the Central Bank expects lenders to engage constructively with their customers to ensure appropriate solutions - which can include further forbearance if appropriate to the borrower circumstance - are available.”
With many of the initial payment break agreements coming to an end in the near future the customer first approach of the Central Bank as the Regulator, will hopefully provide some comfort for borrowers in difficulty.
For the full text of the speech click HERE
By Éilish Larkin