Oireachtas Joint and Select Committees

Wednesday, 27 September 2023

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

General Banking Issues: Discussion

Dr. Colin Hunt:

In terms of provisioning, the expected credit loss provision a bank makes is the most scrutinised number entirely because it is an estimate. Every other number is a hard number. That is one that is generated by a number of things. It is generated by the actual credit experience; and by one's models in terms of how they expect the economy, house prices, unemployment, income growth, inflation and interest rates to progress over the next number of years.

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