Banks could take housing market crash - report

The Irish banks would be able to absorb the impact of a severe crash in the housing market, the Central Bank said today.

Its financial stability report found that even if there was a 55% default rate on mortgages and a 40% drop in property prices, bank profits would merely half. Central Bank Governor, John Hurley, said there might be over-valuation in the housing market but that it was difficult to estimate the extent of it.