The Central Bank governor has said some struggling mortgage customers have adopted a 'wait and see' approach to dealing with their arrears.

Patrick Honohan said in a speech that while he does not believe there are strategic mortgage defaulters, some borrowers are not facing up to the fact that they must repay their loans.

Honahan said the scale of the mortgage arrears crisis in Ireland reflects the absence of immediate consequences for non-payment of loans.

He said this lack of consequences has created a degree of moral hazard.

The governor added that some people in arrears were not facing up to dealing their problems because of a sense of moral outrage at banks, politicians and the wider economy.