The resulting decline in equity reduces both the ability and the financial incentive of stressed borrowers to remain in their homes. Indeed, historically, borrowers with little or no equity have been substantially more likely than others to fall behind in their payments. The large number of outstanding mortgages with negative amortization features may exacerbate this problem.
When the Central Bank was restructured in 2003, the new body was designed with financial stability in mind with both the Central Bank  BIS Review 46/2008  1  and the single Financial Regulator operating within the one organisation. Both of the constituent parts work closely together to contribute to the maintenance of financial stability, though their focus of interest differs.