The Governor of the Central Bank says the banks are engaging in wishful thinking that arrears cases will resolve themselves.
Patrick Honohan is appearing before the Oireachtas Finance Committee today, where he has been giving details on how lenders are meeting targets to help distressed mortgage holders.
Mr Honohan says the banks themselves are responsible for their own operations, not the Central Bank.
He also said that the banks have got to come up with real solutions for the country's 100,000 mortgage holders in arrears.
"There has been a degree of wishful thinking among some of the banks, a belief that many cases will cure themselves without energetic action by the lenders,
"Leaving well enough alone, however, is not an adequate approach.
"Delay worsens the prospects for both lender and borrower. This truism is being acted upon now more expeditiously."