While it is only one option in the resolution of NPLs, loan sales can play an important role in transferring risks from the banks to other types of investors, which reduces the vulnerability of the domestic banking system to future adverse shocks. It is critical to stress that our Codes of Conduct are afforded to all borrowers.
The introduction of the credit servicing regime in 2015 ensures that an unregulated loan owner cannot instruct a credit servicing firm to implement an action that would be inconsistent with the requirements of Irish financial services legislation as it applies to regulated lenders.