Banks in denial over arrears crisis, says finance watchdog

The gap between rich and poor is widening with figures showing the average income of the bottom 10% fell by 24% during 2009/10, while the income of the wealthiest rose by 6%.

As well as taking a huge hit on their income, the less well off were also hardest hit by unemployment, according to figures released by governor of the Central Bank Patrick Honohan.

Another director of the Central Bank also said banks have done little or nothing to tackle the growing mortgage arrears crisis and are in denial about the scale of the problem.