Banks remain cautious on personal insolvency
Banks may be cautious but there's much in the proposed new personal insolvency regime to suit them as well as borrowers, says Jon Ihle
Ever since the troika insisted that Ireland reform its antiquated bankruptcy laws, the banks have been afraid that reform would mean making mortgage debt eligible for easy discharge in a personal insolvency scheme.
Their concern was that a wave of selective defaults would swamp their balance sheet and wash away the capital bulwarks they had put in place since last year’s stress tests.
The banks’ concerns were shared by the Department of Finance,...
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