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Banks respond to Central Bank criticism

Wednesday, October 17 09:48:32

The Irish Banking Federation said today that banks are addressing the problem in accordance with the timeline set down by the Central Bank itself. On Morning Ireland, spokesman Felix O'Regan acknowledged that the process has been "frustratingly slow" but said this was due to the complexities involved and the fact that every case was different. He said that at the start of the year year all of the banks received from the Central Bank a very detailed communication setting out a timeline of activity which said they had until May to submit very detailed mortgage arrears resolution strategies.

Once the Central Bank approved those strategics, the banks then had to pilot various resolution products and processes. Between May and September the banks were testing these resolution products and then began the roll-out after September, he said. In a speech to the Irish Banking Federation's conference yesterday, Ms Muldoon criticised what she called the "wait and see" attitude of the banks to dealing with borrowers who were behind on repayments saying in many instances there was a failure to recognise that the debt simply would not be fully repaid.