Oireachtas Joint and Select Committees

Thursday, 4 April 2019

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach

Matters Relating to the Banking Sector: Bank of Ireland

Photo of Gerry HorkanGerry Horkan (Fianna Fail) | Oireachtas source

The level of NPEs, at 6.3%, is the lowest for any of the Irish banks. Although the Central Bank has not given Bank of Ireland a target, 5% is a level which the organisation would like to reach. Once it achieves that, is it willing to tolerate that level or would it like to reduce it further to, say, 1%? Will it keep disposing of these types of loans or restructuring them? Ms McDonagh has outlined the reasons the bank does not want NPEs. Obviously there is a challenge for those affected by this. Is it her aim to get to 5% or to 1%? The 6.3% NPE level means the bank’s loan book has tied-up capital. Equally, this involves vulnerable customers who went into a loan with the full expectation that the outcomes would be different than how they ended up. What is the game plan for the 6.3% level?

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