The European Parliament has published the European Commission’s (the Commission) answers to its two written questions on the impact of the Mortgage Credit Directive (MCD) on EU citizens residing outside the EU and on dormant bank accounts in Europe.

Addressing the first question, the Commission confirmed that the MCD does not preclude financial institutions which operate in the euro area from extending mortgage credit to EU citizens not residing in the EU at the time they apply for mortgage credit, and whose income is earned in a currency other than the euro. The Commission also confirmed that financial institutions retain a contractual freedom on whether to grant mortgage credit as long as they do so in a non-discriminatory manner.

Addressing the query on dormant accounts, the Commission confirmed that there is no EU-wide legislation on this and that it does not see the need for a legislative initiative at EU level.