Professor Philip Lane:

One element emerging from the Government's efforts is a new approach. I am sure there are many counter-examples but the firm belief is the more those in deep arrears engage seriously with their bank, the better. This may require a great deal of assistance from MABS and other advisers to help them present their case about whether a viable solution is possible, insolvency is better or whether repossession should happen in limited cases. I do not necessarily agree with the Deputy's comment about five years from now. Many of these cases are coming to a conclusion. Given the way the legal system works, there are some years to go on this.

I believe the Central Bank ensures that the supervisory teams who engage with the banks are achieving sustainable solutions. That is a significant effort. We also make significant efforts to ensure the banks follow the code of conduct on consumer protection.

My predecessor towards the end expressed deep regret that it was taking so long to deal with the issues. It is taking a long time to deal with it. Let me also emphasise that this is a strategy that maximises what is possible for the Central Bank in terms of the capacity of the political system to help these people. There are other ways to help these people, but from the point of view of the Central Bank, I think through these strategies, the Central Bank is doing as much as a central bank can do.