The Central Bank will not be changing its mortgage lending rules for next year.
The bank's Financial Stability Review says the current measures, which limit first time buyers to borrowing three and a half times their income, are meeting their objectives.
The review has also found the mortgage lending rules mean banks were in a better position going into the Covid-19 shock than the previous financial crisis.
The review also found that one in six Small and Medium Enterprises (SMEs) are now in financials distress but added that Government supports have cushioned the shock to businesses and households.
The Central Bank governor, Gabriel Makhlouf said in the release uncertainty remains high due to the Covid-19 pandemic and Brexit, but the benefits of resilience built up in the financial sector in recent years is most
Speaking after the release, Mr Makhlouf explained that changes to current mortgage lending rules could lead to house prices increasing.
"Given the underlying demand supply imbalance in the current housing market, additional debt would likely lead to greater pressure on house prices and potentially exasperate affordability issues in areas of high housing demand."