The level of personal debt relative to average disposable income has more than doubled over the past ten years, according to the Central Bank.
In its spring bulletin, the Central Bank has published a special study on the growth of private sector credit in Ireland over the past 10 years, and how we compare with the rest of Europe.
The report finds that household debt, most of which is mortgage debt, has been growing at three times the euro zone average rate since 1999.
The bank is not overly concerned at this accumulation of debt so far, as it still places us only in an average position compared with other euro zone countries. But it warns that this rate of credit growth cannot continue, and points out that a large proportion of household debt is linked to variable interest rates.
If rates were to rise, the bank warns that it could have a bigger impact on the economy here than in other euro zone countries.
The bank's report also contains data which show that the overall price level of houses in Ireland is greater than in any other EU country, with higher prices to be found only in London.
The bank again expressed its hope that house price increases would moderate. Meanwhile the financial regulator IFSRA is currently working with banks and other lending institutions to compile a code on mortgage lending.
