Banks to be asked to clearly justify way they deal with distressed borrowers

Banks will face extensive scrutiny of their mortgage loan books and have to justify more clearly the way they deal with distressed borrowers in arrears in the Programme of Government struck between Fine Gael and the Independent Alliance.

The programme will be published in detail later this week but the Irish Examiner understands that the terms of the agreement will be more far-reaching than many believe.

The document calls on the Central Bank to commission an independent assessment of arrears on the loan books of the lenders with the purpose of reducing once and for all the level of arrears in Irish banks to more normal levels.