to see that lenders are taking a reasonable and controlled approach. all such sales must also comply with the affordability and suitability provisions set out in the consumer protection code. mortgage arrears resolution strategies : looking further ahead unsustainable mortgages, buy to let and negative equity mortgages, along with enhanced resources and infrastructure, are our immediate priorities in the follow up work with the banks. frankly, with such a difficult and complex issue there is a capacity constraint in the banks and we are wary about pressing to improve all the aspects of the banks strategies simultaneously for fear of not making sustainable progress on any as a consequence. however, looking further ahead we will plan to examine more closely the banks pre - arrears strategies, for example, and will, as i said earlier be both reviewing the effectiveness of the code of conduct on mortgage arrears and assessing banks ’ compliance with it. as part of the central bank ’ s on - going research on the mortgage market, a household income survey is being conducted. the survey will provide a more accurate picture of the financial position of a representative sample of mortgaged households. it is due to be in the field very shortly, with results and analysis being published later in the year. the immediate focus of our efforts has been on the seven largest lenders that account for nearly 90 % of the mortgage market ( by value ) and three quarters of arrears over 90 days. however, we will be following up with the other lenders who have sent in strategies to give them feedback and to press for improvements as needed. we are also in parallel undertaking some consumer research to inform our work. in conjunction with the household income survey i just mentioned, our consumer protection division is conducting a survey on a subsample of borrowers who are in pre - arrears and arrears and are in the mortgage arrears resolution process. the research will involve borrowers who have mortgages with four mainstream lenders and are in the marp since 1 january 2011, when the revised code came into effect. we want to understand the borrower ’ s experience and treatment when in the marp. the research will focus on areas of the marp which would not be easily learned from a client file during an inspection such as whether the information received by the customer was explained clearly and the type of support the customer received from the lender when going through the marp. our findings will feed into the review of the ccma planned for

gained pace, the number of legal proceedings against mortgage holders have also been increasing. the central bank ’ s continued role in this area is to ensure that the banks adhere to the code of conduct of mortgage arrears, meet the criteria for sustainable solutions and continue to engage with their customers to find non - repossession solutions whenever possible. the consumer protection ( regulation of credit servicing firms ) act 2015 seeks to ensure that borrowers whose loans are sold to unregulated transferees maintain the regulatory protections they had prior to the sale. bis central bankers ’ speeches it is imperative that lenders continue to work with over - indebted consumers to try to resolve any arrears situation and to achieve sustainable solutions with co - operating borrowers. clearly for many, there is no quick remedy or solution to long term arrears and careful, empathetic but realistic approaches need to be taken. i welcome the new coordinated programme of assistance for those in long - term arrears, with mabs acting as a “ one stop shop ” for borrowers in need of advice and support. for credit unions, the central bank ’ s new regulations came into effect on 1 january this year. these will enhance soundness and provide for enhanced confidence in the sector, supporting its role in providing important financial services to the community. we will continue to work with credit unions to support appropriate restructuring measures, the embedding of the strengthened regulatory framework, and to facilitate prudent and appropriate development. this is also a landmark year for the insurance sector, with the solvency ii framework going live. the “ whole balance sheet ” approach to capital calculation combined with the strong emphasis on a firm ’ s risk management and supervisory review will result in a muchtransformed regulatory and supervisory framework. this year, central bank supervisors and the supervised firms will be putting this framework into operation for the first time. in december, we released new regulations on sme lending. the regulations aim to strengthen protections for smes, while also facilitating access to credit. the regulations provide for greater transparency around the application process and the reasons for refusing credit applications, greater protections for guarantors and an expansion of the grounds for an internal appeal. there is growing international recognition that financial regulators should be more pro - active in protecting consumers, in view of the complexity, risks and costs of financial products. it is not our role to run the firms we regulate nor is it to determine their business models or strategies ( including in