The high level of mortgage arrears in the Irish financial system and the associated overhang on economic growth underlines the importance of prudent lending standards throughout the property cycle. Macro-prudential tools such as loan-to-value (LTV) ratio caps and loan-to-income (LTI) ratio caps...

Macro-prudential policy is designed to address risk at a systemwide level, an example of which is mortgage default following excessive residential property lending in Ireland. Policy tools to address this risk, such as caps on loan- to-value and loan-to-income ratios, are used to build balance...

This Letter provides an overview of the Central Bank of Ireland's Loan Loss Forecasting framework. This framework, which utilises detailed loan-level data provided on a six-monthly basis by domestic Irish banks, includes internally- developed probability of default (PD) models and a cash ow...