We focus our attention on areas where there is strong justification for regulation based on clear market failure and where the benefits to society of regulation are expected to well exceed the costs. The main source of market failure in banking is negative externalities – which occur when banks do not fully take into account the wider effects of their commercial decisions.
It is much lower for the Dublin office sector, at 7 per cent in 2017Q1. A substantial amount of new office supply is under construction, being planned, or at pre-planning stage. The commercial real estate market has also seen a broadening of its investor base in recent years.