The Governor of the Central Bank has told a conference on international finance that while most of the problems affecting Irish banks were 'home grown' they took place in an international context.

Professor Patrick Honohan said there were many lessons to be learned from the 'great financial crisis' that has 'thrown up many key questions for research' and international fiscal policy.

Mr Honohan told the gathering in Trinity College that Ireland's 'banking fuelled' property boom created a huge income for the Government in 'transient' taxes such as stamp duty and capital gains tax while other 'solid, reliable, sustainable' taxes were allowed to shrink, 'which created a hidden vulnerability'.