The Governor of the Central Bank says resolving the mortgage arrears crisis is now the most important domestic issue being dealt with.
Patrick Honohan made the comments when he appeared before the Oireachtas Finance Committee this afternoon.
He has admitted banks were slow to step up to deal with this crisis but they are there now.
M. Honohan says if banks do not step up and deal with the issue of mortgage arrears they will need more capital.
He believes banks must now deliver what was promised in the personal insolvency legislation.
The Governor also says negotiations on the bad debts of Anglo will "get us to a better place".
He says it is the most important international issue the country is currently dealing with.
Appearing before the Oireachtas Finance Committee he has raised hopes of a deal on the Anglo promissory notes saying going this route rather than just not paying them is the right thing to do.
