Is the Central Bank there to protect the banks or to protect the consumers?
During the property bubble the Central Bank presided over a situation where banks operating in Ireland were permitted to engage in totally inappropriate lending practices such as 100% mortgages over 40 year periods which were a multiple of 10 times the borrowers earnings.
The banks of course were making a lot of money. Property prices continued to rise and rise as more and more Irish people paid way over the odds for houses which are now descending into negative equity. But what did the Central Bank do to prevent this scandal? Absolutely nothing!
As the share price of Irish banks plummet (along with property prices) the Central Bank continues to claim that the Irish banks are solid. The banks are now in big trouble and in the end the Irish taxpayer will be forced to bail them out when the inevitable collapses occurs.
It is now clear that the Central Bank is there to protect the banks and not to protect the consumers.