ANALYSIS: Mortgage arrears will limit Irish recovery unless it is addressed 

Way back in the mists of time, while studying business at second level, one of the most basic questions set forth in a textbook was: ‘What is the role of a bank?’

It was a formulaic question followed by a very formulaic answer. And back in the late 1980s/early 1990s, it was a very straightforward answer.

Banks were conservative institutions that took in deposits and then recycled these deposits though prudent lending practices. Then along came the Celtic tiger and the rulebook was ripped up.