In the aftermath of the financial crash of 2008, the European debt crisis, and the Irish banking crisis, in 2014 regulations were passed aimed at promoting higher banking standards to prevent similar crises in the future.
The first of these rules states that all Irish banks have initial starting capital of at least €5 million; they must always be in excess of this amount. Further, lenders have claimed that they must hold up to three times the capital for mortgages relative to average requirements throughout the rest of the EU.
These regulations largely seem to have accomplished the job they were instated, with the Banking and Payments Federation Ireland (BPFI) stating that there has been an increase in high quality loans and a corresponding decrease in problem loans.
However, there has been criticism as of late for the continued implementation of these rules, and for the harsh conditions they impose on lenders. It is possible that borrowers are also adversely affected by extension. For instance, it is claimed by major Irish banks that the high capital requirements are …