Central Bank beefs up risk probes

INSPECTIONS into mortgage arrears cases will be a core target in 2012 under the Central Bank’s new framework for supervising risk levels in financial institutions.

The PRISM (Probability Risk and Impact SysteM) framework will sharpen the Central Bank’s immediate focus on mortgage lenders and upon the risks that pose the greatest threat to financial stability and consumers.

The first ‘themed’ inspections of 2012 will be based upon market intelligence, with mortgage arrears cases referred by Financial Services Ombudsman first in line for consideration.