Where they do not or cannot do so, the matter goes to the courts, which tend to operate in a slow process with many lengthy adjournments (providing the banks with an additional entity to which they can attach blame). Perceptible progress in dealing with arrears is now undeniable. But it is still too slow (Figure 1).
The persistence of chronic arrears cases inhibits the ability of Government to attract buyers for the banks that have been nationalised and results in higher imposed capital requirements than would otherwise be necessary. This problem has not gone away.