A review is being carried out of the targets for banks in dealing with mortgages in arrears.

The Central Bank is working on the process, which is expected to conclude in the next month.

It is also reviewing the powers of the Insolvency Service of Ireland to see if it can be more effective in helping people in financial difficulties.

Justice and Equality Minister Frances Fitzgerald said "I would like to see a more fundamental change in the overall number of solutions reached under the Personal Insolvency Act. People who are struggling with unsustainable debt must be able to benefit directly from the statutory debt solutions already introduced."

The moves follow a meeting last week involving the Taoiseach, Tánaiste and the Minister for Justice with the head of the ISI and a group of personal insolvency practitioners.

The ISI has welcomed the review.

Figures released by the ISI last month showed that it dealt with more than 1,000 individuals in 2014 - 448 who filed for bankruptcy, and 547 who entered alternatives to bankruptcy.

The cost of the process of entering bankruptcy was significantly reduced in 2014 to aid those who find themselves in financial distress. It now costs €270, compared to about €1,400 a year ago.

ISI is also waiving the fees of close to €500 that had been associated with declaring personal insolvency.

Last month it was also reported that there are 37,400 people in Ireland in arrears for two or more years, who owe approximately €1.8bn of the entire arrears figures outstanding in Ireland of €2.3bn.

The Irish Mortgage Holders Organisation predicts that 20,000 of the 37,400 will lose their homes.