Whether such a non-legally binding steering signal or guideline would have been more effective than consumer protection legislation is an open question. In either case, legally binding consumer protection is probably stronger. At least in terms of creating a level playing field between domestic and foreign credit institutions, legally binding consumer protection has merit.
That process started immediately after the bubble burst and a number of important policy measures were taken in 2008 and 2009. Initially, the focus was on ensuring that the banking system continued to function and on restoring fiscal soundness. However, despite significant measures in both the banking and fiscal areas, serious concerns persisted about Ireland’s financial balance sheet.