Undoubtedly there are many stressed households with burdensome mortgage debts, not least in the buy-to-let category; the policy challenges that this presents in terms of achieving workable and fair solutions are more complex than the mere issue of the likely loan-losses that might be involved, for which (as I have mentioned) an allowance well in excess of the banks’ own accounting provisions has already been made.
Winning investor confidence In anticipation of next year’s update of the PCAR exercise, the Central Bank is embarking on a more granular analysis of the this part of the portfolio in particular to track its evolving performance and determine whether the expected loss amounts remain sufficient.