Ivor Callely (Fianna Fail)

There are approximately 500 banks on the register of credit institutions. In recent years the Irish banking sector has enjoyed great competition, with approximately 60 institutions operating in the retail banking market. I will cut to the chase. The most significant economic impact of the sector is that it provides the capital necessary for business to function and to invest for expansion. I express my appreciation to the banking sector for all it has done in assisting the economy in recent years, the benefits of which we have all enjoyed.

Each year the Central Bank and Financial Services Authority of Ireland publishes the financial stability report, which is an assessment of financial stability in the domestic financial year. The conclusion of the CBFSAI at the end of 2007 was that "the Irish financial system's shock absorption capacity remains robust and the system is well placed to cope with emerging issues". The CBFSAI monitors a series of financial soundness indicators, FSIs, of the banking system. These are used to measure the sensitivity to market risks of Irish banks, along with their asset quality, capital adequacy, liquidity and earnings and profitability. Based on the FSIs, the risk-based capital ratios used to assess the solvency of Irish banks are above all benchmark levels. Furthermore, non-performing loans and bad debts represent less than 1% of total loans.

There is one figure I will put on the record, because time and again people have mentioned irresponsible bankers giving 100% loans. There is no doubt there are 100% loans. However, this research paper states that only 2% of mortgages in the mortgage book were at loan-to-value ratios of over 92%——