Oireachtas Joint and Select Committees

Wednesday, 4 March 2015

Committee of Inquiry into the Banking Crisis

Context Phase

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

Finally, in Professor Ahearne's opening remarks he characterised quite starkly the change in the nature of mortgage lending in Ireland around 2006 and the data from the Department of the Environment, Community and Local Government that one in three new home buyers in 2006 took out 100% mortgages. That rate had doubled from the year before. Two thirds of all new home mortgages taken out in 2006 were 31 to 35 years or longer. Is Professor Ahearne satisfied that the tools were there within the legislative powers that the regulator and the Central Bank had to deal with that issue? Why does he think those risks were not identified and action was not taken?

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