The term-structure was relatively steep, so that the requirement that the remaining two-thirds of any financing package had to be indexed to a five-year rate – whether real or nominal – made a substantial difference to the cost of housing finance. In addition, increases in both LTV and PTI ratios were moderately effective. However, increasing capital charges had very little impact in practice.
There are multiple markets, most of which function well, covering life, non-life and health sectors; with domestic markets served by firms authorised in Ireland and abroad and significant volumes of insurance services exported from Ireland2. Our approach to regulation and supervision must be appropriate, proportionate and effective for all these markets and the complex array of firms operating within them.