Prudential capital The mortgage arrears problem clearly has capital implications for banks and has been a subject of close attention. At the Central Bank we recognised the deteriorating trend in mortgage arrears when we carried out our Prudential Capital Assessment Review earlier this year.
Taking the GDP-weighted average of the euro area 10-year government bond yields, yields fell by around 150 basis points between early June 2014 and early March 2015. That also had spillover effects, through portfolio rebalancing, to the cost of market finance across the economy.