only adding to the size of the shortfall that the customer ultimately faces in a default. boards of directors need to take a direct interest in whether the rescheduling arrangements that have been put in place are working and treat their customers fairly on this point. they need to satisfy themselves that the banks ’ strategy for mortgage arrears is up to the task. more of that in a moment. at the heart of the marp process is the case - by - case determination by the bank as to whether a rescheduling is appropriate and which scheme is to be offered. under the code all lenders are required to carry out formal six monthly reviews to assess the appropriateness of each arrangement. we plan to lift the lid on this process as part of our inspections and look very closely at how the banks are working through individual cases. we would expect banks to develop and share with us their decision - making trees for determination of individual cases. we want to understand the staffing arrangements for these decisions. we think that it would be best practice for banks to establish the net present value of the alternative rescheduling approaches ( much as us lenders are doing ) and we want to see whether lenders are developing such best practice approaches. these various efforts are designed to encourage the development of a wider menu of rescheduling options to address the arrears problem. in introducing any of these measures to assist distressed borrowers it is essential to ensure that people who can service their debts are not given an opportunity to escape from their obligations. the state through its taxpayers has already assumed too great a burden in this crisis. careful calibration of measures and a targeted, case - by - case, approach must be the hallmarks of current and future policy for the resolution of arrears problems. while loan modification may be necessary in some cases, there will be adverse consequences for the homeowner – while they may be able to stay in their homes, there will likely be a loss of ownership. these arrangements must be targeted at those who genuinely cannot make the normal menu of rescheduling options work. bis central bankers ’ speeches as the governor of the central bank, patrick honohan, recently explained, resolution will be effective only if it is guided by clear principles. these include ; 1. affordability for the borrower of any modified repayment plan ( that is to say, recognising the true scale of the problem based on a sufficiently comprehensive assessment of

industry, address at the central bank insurance conference ( 15 february 2019 ) 6 withdrawal of the united kingdom from the european union ( consequential provision ) bill 2019 ) 7 esma : esma and eu securities regulators agree no - deal brexit mous with fca ( 1 february 2019 ) 8 central bank of ireland : fcaannounces window for notifications under their temporary permissions regime ( 16 january 2019 ) 9 source : eurostat. 10 lane, philip r : the irish crisis, cepr discussion paper no. 8287 ( 2019 ) and whelan, k. : ireland ’ s economic crisis : the good, the bad and the ugly, journal of macroeconomics, vol. 39, pp. 424 – 440 ( 2014 ). 11 source : cso national accounts statistics. 12 o ’ rourke, k : a short history of brexit : from brentry to backstop, penguin books 13 in 1998, the services sectors accounted for about 64 per cent of employment – at the end of 2018, this share has risen to over 76 per cent. 14 central bank of ireland : quarterly bulletin – contributions to gdp 15 o ’ rourke, k : a short history of brexit : from brentry to backstop, penguin books 16 european commission : eurobarometer survey ( autumn 2018 ) 17 central bank of ireland : quarterly bulletin – qb1. figure for 2018 is estimated as full data for the year not yet available 18 central bank of ireland : quarterly bulletin – qb1, box c p35 ( january 2019 ) 19 national competitiveness council : ireland ’ s competitiveness challenge 2018 ( december 2018 ) 20 lane, philip r : the treatment of global firms in national accounts, central bank of ireland economic letter, vol. 2017, no. 1 21 o ’ rourke, k : a short history of brexit : from brentry to backstop, penguin books 22 lawless, m, siedschlag, i. and z studnicka : irish enterprise exporting patterns in goods and services, esri research bulletin ( april 2017 ) 23 see conefrey, t. irish agriculture : economic impact and current challenges. central bank of ireland economic letter, vol. 2018, no. 8 24 intertradeireland : potential impact of wto tariffs on cross - border trade ( june 2017 ) 25 see teagasc “ brexit update : possible impacts on the irish beef industry ”. for an overview see