The Minister for the Environment and Local Government, Mr Dempsey, has asked the governor of the Central Bank to pursue further with the lending institutions the issue of their mortgage lending policies.

Mr Dempsey, who met Mr Maurice O'Connell yesterday, said he was concerned about recent publicity suggesting a loosening of credit standards in mortgage lending and the effect this could have on house price trends.

Mr O'Connell said he would continue to monitor lending practices closely to "ensure the highest standards continue to be observed".