On the face of it, the Central Bank’s recent proposals to limit lending to borrowers are probably not a bad thing. If it can help prevent bonus-driven lending and feckless borrowing, then well and good.
The measures, admitted by their proposers to be crude, are probably designed to be part of a long-term housing affordability framework; they are definitely designed to try to prevent any credit- fuelled bubble.
Their crudity is also their strength – very few lenders or borrowers will not understand them. Whether lenders adhere to them, or find ways around them, is another issue.
Read the full story in the Irish Times
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