Oireachtas Joint and Select Committees

Thursday, 17 November 2022

Public Accounts Committee

2021 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 7 - Office of the Minister for Finance
Finance Accounts 2021
2021 Report on the Accounts of the Public Services of the Comptroller and Auditor General
Chapter 1 - Exchequer Financial Outturn for 2021
Chapter 2 - Net Cost of Banking Stabilisation Measures
Chapter 22 - Ireland Apple Escrow Fund

9:30 am

Mr. John McCarthy:

Essentially, two macroprudential tools were introduced about a decade ago. One was loan-to-value but the more restrictive one was loan-to-income, which, as the Chairman rightly noted, was up to 3.5 times a person's income. From an economic perspective, that would have been seen as very restrictive in an environment in which interest rates were so low. What ultimately determines a person's repayment capacity is his or her debt-interest payments as a percentage of his or her disposable income.