Professor Patrick Honohan:

Let me provide an example of the sort of situation that could give rise to letters being used more than other methods, particularly given the large backlog that is being handled. Although it is not the case universally, one can imagine some instances in which a bank has heard or received nothing from a borrower, including payments, for one, two or more years despite many attempts to make contact in line with the CCMA. The bank has no basis for devising an alternative solution. It has no way of knowing how much someone is earning. It might not even know where that person lives.

We considered this issue when we saw it coming down the tracks. Should the Central Bank tell the banks to commence legal proceedings because that is the only course available to them? We decided to say, "Yes". There was no other possibility. How could the banks move? However, it is not the end of the story. As the Chairman stated, it is only the beginning of the story.