spending decisions. housing costs also influence where people choose to live or work. similarly, changes in commercial property prices and rents can affect businesses ’ profitability and net worth, as well as their ability to access capital. more broadly, construction is an important component of economic activity, with employment in the sector accounting for around 7 % of total employment in ireland. so there are a number of channels through which property markets interact with the broader economy. there are other factors that make property unique from a macro - financial perspective. first, in economic terms, property operates both as an investment asset and a consumption good. households or companies may purchase a property with different intentions : they could occupy it ( so, in our economic jargon, use it primarily for consumption purposes ). or they could treat it as an investment. given this dual role of property, demand for property purchases can be influenced by expectations of future capital appreciation. this can create pro - cyclical dynamics in property markets, especially if households or businesses form expectations about the future based on recent trends. second, property purchases are financed partly through debt. this creates a very strong link between the property market, financial intermediaries – such as banks or non - bank lenders – and the broader economy. this link has also grown significantly over time. globally, for example, the share of residential and commercial mortgages in banks ’ total lending portfolios has roughly doubled over the course of a century – from about 30 % in 1900 to close to 60 % in 2010. 2 this has also been the case in ireland, where the banking system now has a higher - than - average concentration on real estate lending relative to the rest of europe. 3 third, property is a key source of collateral across the economy. this creates a strong link between what happens to property valuations and the ease of financing conditions for the economy as a whole. in a rising property market, lenders are often willing to lend more and at easier terms, as the value of the collateral increases. at the same time, households and business may seek to borrow more, including to invest back in the property market. this can lead to further increases in property values, creating an endogenous dynamic that can eventually become unsustainable, reversing abruptly when adverse shocks hit. the combination of these factors means that the nature of financing matters, not just for the functioning of property markets themselves, but for the broader economy and society as a whole. the historical evidence here is

long hard look in the mirror, and as pre - approved control function holders to be actively considering their responsibilities regarding disclosure and whistleblowing. in more general terms, as the reputation of financial services firms has been damaged there is a tendency for a greater degree of commoditisation of services, products and product providers. if consumers do not trust providers or their products, they are understandably going to be more driven by price, when other factors may also be important in terms of suitability. concerns are so deep rooted that there is a lack of trust regarding pricing ( e. g. car insurance, mortgage pricing ), and customer treatment ( e. g. re mortgage and sme borrowers in distress ). in this context, it is unsurprising that the central bank, together with other international supervisory bodies, including, inter alia : the bank of international settlements, the european central bank ; the group of 20 ; the new york federal reserve and the bank of england 6 have identified culture as an important issue. what does good look like? while regulators have strengthened the structural requirements around governance risk, including remuneration rules, these rules are only a partial solution and are not sufficient to drive appropriate culture in firms, which is the responsibility of the board and senior management. in its paper on banking conduct and culture : a call for sustained and comprehensive reform, the g30 outlined that “ banks should specify their cultural aspirations through a robust set of principles, and fashion mechanisms that deliver high standards of values and associated conduct consistent with the firm ’ s purpose and broader role in society " 7. while focused on banks, this paper resonates and is relevant across other financial services sectors. although there is no one action that will ensure that a good culture is achieved, there are clear actions that can be taken to seek to ensure a firm ’ s culture is improved and in line with that 2 / 7 bis central bankers'speeches espoused by the board. these include : 1. the board taking responsibility for the culture of the firm and understanding the behaviours that culture drives – for example through the establishment of an ethics subcommittee to the board ; or a measurement or monitoring by the board of the firm ’ s culture through engagement with management, employee surveys or employee focus groups. 2. the board overseeing ( e. g. through an ethics subcommittee ) : recruitment policy, hiring decisions, implementation of remuneration policies that reward and incentivise appropriate behaviours in line with