Banks must give homeowners time to repay arrears, warns Financial Regulator

The country's financial watchdog will be checking up on banks to make sure they give struggling homeowners breathing space before taking them to court.

The Financial Regulator recently gave homeowners 12 months to work out a solution to deal with their arrears before their bank can take legal action.

Speaking at his first public appearance since becoming head of financial regulation at the Central Bank, Matthew Elderfield said they will be reviewing the level of compliance among the banks.