Ed Sibley: A long shadow – the need for continued focus on resolving long term mortgage arrears

Remarks by Mr Ed Sibley, Deputy Governor (Prudential Regulation) of the Central Bank of Ireland, at the Banking & Payments Federation Ireland (BPFI) Breakfast Briefing, virtual, 13 July 2021.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Introduction

Good morning ladies and gentlemen.

I would like to start by thanking the Banking & Payments Federation Ireland (BPFI) for organising this webinar. I am grateful for the opportunity to talk to so many of you who are directly involved in working with borrowers in distress.

The provision of credit is one of the most important tasks of the financial services system. It stimulates and lubricates economic activity, supports wealth creation for the whole of society, and allows households and individuals to bring forward consumption and purchases that would be impossible without it – including, critically, the purchase of housing. However, it does obviously have its risks, both to lenders and borrowers and the wider economy and financial stability of the country.

For these reasons, the provision of credit is a key focus of the work of the Central Bank. This focus cuts across our whole mandate, including monetary policy, our economic research and policy advice, our use of macro prudential policy tools, our day to day supervisory engagement, and our focus on the conduct of financial services firms. We seek to safeguard financial stability and protect borrowers through our ambition for a resilient and trustworthy financial system, which sustainably serves the needs of the economy and citizens of Ireland and the EU, in which firms and individuals adhere to a culture of fairness and high standards.